Texa s Commission on Environmental Quality Page 1 Chapter 101

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The Texas Commission on Environmental Quality (TCEQ, agency, commission) proposes amendments to § § 101.1 , 101.10, 101.27 , and 101.201

.
If adopted, the commission will submit §§ 101.1 , 101.10 , and 101.201 to the United States Environmental Protection Agency (EPA) as revisions to the state implementation plan (SIP).

Background and Summary of the Factual Basis for the Proposed Rules In Massachusetts v. EPA (549 U.S. 497 (2007)) the Suprem e Court of the United States ruled that greenhouse gases (GHGs) fit within the Federal Clean Air Act (FCAA or Act) definition of air pollutant. This ruling gave EPA the authority to regulate GHGs from new motor vehicles and engines if EPA made a finding un der FCAA, § 202(a) that six key GHGs taken in combination endanger both public health and welfare, and that combined emissions of GHGs from new motor vehicles and engines contribute to pollution that endangers public health and welfare. EPA issued its "Enda ngerment Finding" for GHGs 0n December 15, 2009, (Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act, Final Rule, as published in the December 15, 2009, issue of the Federal Register (74 FR 66496)). Based on the Endangerment Finding, EPA subsequently adopted new emissions standards for motor vehicles (the "Tailpipe Rule" as published in the May 7, 2010, issue of the Federal Register (75 FR 25324)). The rule established standards for light

- duty motor vehicles to improve fuelTexa s Commission on Environmental Quality Page 2 Chapter 101

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economy thereby reducing emissions of GHGs. The standards were effective January 2, 2011. EPA also reconsidered its interpretation of the timing of applicability of Prevention of Significant Deterioration (PSD) under the FCAA (the "Timing Rule" as published in the April 2, 2010, issue of the Federal Register (75 FR 17004)). EPA's interpretation of the FCAA is that PSD requirements for stationary sources of GHGs take effect when the first national rule subjects GHGs to regulation und er the Act. EPA determined that once GHGs were actually being controlled under any part of the Act they were subject to regulation under the PSD program. Specifically, EPA took the position that beginning on January 2, 2011, GHG control requirements would be required under the PSD and Title V permitting programs because national standards for GHGs under the Tailpipe Rule were effective on January 2, 2011.

EPA's regulation of GHGs under the FCAA presented substantial difficulties for the EPA and states, pa rticularly with regard to the PSD program. For instance, the most common of the GHGs, carbon dioxide (CO 2 ), is emitted in quantities that dwarf the Act's major source thresholds for program applicability. As a result, under EPA's Timing Rule, PSD requireme nts could have expanded from approximately 500 issued permits annually to more than 81,000 nationwide, as published in the June 3, 2010, issue of the Federal Register (75 FR 31514, 31537 and 315 38). To avoid this result, EPA excluded much of this
new const ruction activity from the PSD program by altering the Act's statutory emission rate applicability thresholds for GHGs. This "Tailoring Rule," as published in the June 3,Texa s Commission on Environmental Quality Page 3 Chapter 101

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2010, issue of the Federal Register (75 FR 31514) newly defined the statutory term "su bject to regulation" and established higher GHGs emission thresholds for applicability of PSD and Title V permitting than specified in the FCAA. The Tailoring Rule also phased in permitting requirements in a multi

- stepped process.

Before the Massachusett s decision in 2007, EPA took the position that GHGs are not regulated under the FCAA, and GHGs unquestionably were not regulated when EPA approved Texas' SIP in 1992. Texas has had an approved SIP since 1972, as published in the May 31, 1972, issue of the Federal Register (37 FR 10842). In 1983, Texas was delegated authority to implement the PSD program, as published in the February 9, 1983, issue of the Federal Register (48 FR 6023). Following this delegation, Texas submitted several SIP revisions to enabl e it to administer the PSD program (collectively the "PSD SIP submission"). EPA approved Texas' PSD SIP in 1992, granting the state full authority to implement the PSD program, as published in the June 24, 1992, issue of the Federal Register (57 FR 28093).

The Texas PSD SIP submission and approval proceedings produced a well

- developed record on how Texas would address the applicability of newly regulated pollutants under the PSD program. During the SIP submission process, Texas consistently explained to E PA that the PSD provisions in the SIP are not prospective rulemaking, and do not incorporate future EPA interpretations of the Act or its regulations.Texa s Commission on Environmental Quality Page 4 Chapter 101

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EPA's GHGs regulations created practical difficulties about how EPA could apply its Tailoring Rule in states with approved SIPs. In August 2010, Texas advised EPA that it could not retroactively reinterpret its SIP to cover GHGs, which were not regulated at the time Texas' SIP was approved in 1992 and were, in fact, a composite pollutant defined for the fi rst time in the Tailoring Rule. Texas also explained that the PSD program only encompassed National Ambient Air Quality Standard (NAAQS) pollutants, but confirmed as a regulatory matter that the approved PSD program encompasses all federally regulated

new source review (NSR) pollutants, including any pollutant that otherwise is subject to regulation under the FCAA, as stated in §116.12(14)(D).

Following promulgation of the Tailoring Rule, EPA issued a proposed "Finding of Substantial Inadequacy and SIP Ca ll," as published in the September 2, 2010 , issue of the Federal Register (75 FR 53892). This action proposed finding the SIPs of 13 states, including Texas ' , "substantially inadequate" because these SIPs did not apply PSD requirements to GHGs

- emitting sou rces. EPA proposed to require these states ( through their SIP

- approved PSD programs) to regulate GHGs as defined in the Tailoring Rule. EPA also proposed a Federal Implementation Plan (FIP) that would apply specifically to states that did not or could not agree to reinterpret their SIPs to impose the Tailoring Rule and did not meet SIP submission deadlines. EPA finalized its GHG SIP Call in the December 12, 2010 , issue of the Federal Register (75 FR 77698) and required Texas to submitTexa s Commission on Environmental Quality Page 5 Chapter 101

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revisions to its SIP b y December 1, 2011.

EPA published an interim final rule partially disapproving Texas' SIP; imposing the GHGs FIP effective as of its date of publication, as published in the December 30, 2010, issue of the Federal Register (75 FR 82430). EPA stated that FCAA, §110(k)(6) authorized it to change its previous approval of Texas' PSD SIP into a partial approval and partial disapproval. EPA's basis was that it had erroneously approved Texas' PSD SIP submission because the SIP did not appropriately address the a pplicability of newly

- regulated pollutants to the PSD program in the future. EPA further stated that its action was independent of the GHG SIP Call because that action was aimed at a narrower issue of applicability to GHGs, whereas its decision retroactive ly disapproving Texas' PSD SIP submission was addressed to Texas' purported failure to address, or assure the legal authority for, application of PSD to all pollutants newly subject to regulation. EPA published the final rule retroactively disapproving Te xas' PSD SIP in part and promulgating the FIP as published in the May 3, 2011, issue of the Federal Register (76 FR 25178).

The effect of EPA's FIP is that major source preconstruction permitting authority is divided between two authorities

- EPA for GHGs and the state of Texas for all other pollutants. Currently, major construction projects and expansions in Texas that require PSD permits must file applications with both EPA Region 6 (for GHGs) and TCEQ (for all non

- GHGTexa s Commission on Environmental Quality Page 6 Chapter 101

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pollutants).

Although Texas has an EPA

- approved Title V operating permit program, it currently lacks the approval to permit sources that are major sources subject to Title V as a result of their emissions of GHG s
. In EPA ' s " Action to Ensure Authority to Implement Title V Permitting Programs Under the Greenhouse Gas Tailoring Rule, " as published in the December, 30, 2010 , issue of the Federal Register (75 FR 82254), EPA stated in footnote 8 that in this situation, there is no obligation for these major GHG sources to app ly for a Title V permit until such time as the state amends its rules to make the permit program applicable to them.

House Bill (HB) 788, 83rd Legislature, 2013 added new Texas Health and Safety Code (THSC), §382.05102. The new section grants TCEQ author ity to authorize emissions of GHGs consistent with THSC, §382.051, to the extent required under federal law. THSC, §382.05102 directs the commission to adopt implementing rules, including a procedure to transition GHG PSD applications currently under EPA r eview to the TCEQ. Upon adoption, the rules must be submitted to EPA for review and approval into the Texas SIP. THSC, §382.05102 excludes permitting processes for GHGs from the contested case hearing procedures in THSC, Chapter 382; Texas Water Code, Chap ter 5; and Texas Government Code, Chapter 2001. THSC, §382.05102 also requires that the commission repeal the rules adopted under this authority and submit a SIP revision to EPA, if (at aTexa s Commission on Environmental Quality Page 7 Chapter 101

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future date) emissions of GHGs are no longer required to be authoriz ed under federal law.

The commission is initiating this rulemaking to fulfill the directive from the legislature. The legislature found that "in the interest of the continued vitality and economic prosperity of the state, the Texas Commission on Environme ntal Quality, because of its technical expertise and experience in processing air quality permit applications, is the preferred authority for emissions of {GHGs}."

Texas has challenged in federal court EPA's GHG regulations as well as EPA's SIP Call and FIP. Implementation of HB 788 through this rulemaking is not adverse to Texas' claims in its ongoing challenges to EPA ' s actions regarding GHGs generally or relating to the SIP. The commission ' s action to conduct rulemaking for submittal and approval by EPA is consistent with Texas ' position that state law does not give EPA the authority to automatically change state regulations.

Concurrently with this proposal, the commission is proposing new and amended rules to 30 TAC Chapters 39 (Public Notice), 55 ( Requests for Reconsideration and Contested Case Hearings; Public Comment), 106 (Permits by Rule), 116 (Control of Air Pollution by Permits for New Construction or Modification), and 122 ( Federal Operating Permits Program) to implement HB 788

. Except where specifically noted, all proposed changes to Chapters 39, 55, 101, 106, 116 , and 122 are necessary to achieve the goal of implementationTexa s Commission on Environmental Quality Page 8 Chapter 101

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of HB 788, obtaining SIP approval of certain rules, and the lifting of the FIP.

Implementation of HB 788 THSC, §382.021 5 provides that the commission require the owner or operator of a regulated entity that experiences emissions events to maintain a record of all emissions events at the regulated entity in the manner and for the periods prescribed by commission rule. Howev er, not all emissions events, consisting of emissions from upset events and unscheduled maintenance, startup and shutdown (MSS) activities, are required to be reported under §101.2o1. THSC , §382.0215 also authorizes the commission to establish the reportable quantities (RQs) of air contaminants associated with emissions events and requires the owner or operator of a regulated entity to notify the commission for each
emissions event that meets or exceeds a n RQ

. The reporting provides useful informat ion to evaluate the event for protection of air quality. In 1997 and 1999 , the commission adopted RQs and updated its rules to clarify when and how emissions must be recorded and reported, considering reporting requirements found in other state and federal regulations, enhancement of compliance, and utilization of TCEQ resources. The commission uses the reports to determine compliance with the rule and claims of affirmative defense, determine excessive emissions events, organize potential monitoring of long duration events, provide technical assistance to emergency personnel, and inform the public. The records are also used to evaluate trends and provide an enforcement perspective. More information can be found in the rulemaking that first adopted the RQs in the July 29, 1997 , issue of the TexasTexa s Commission on Environmental Quality Page 9 Chapter 101

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Register ( 22 TexReg 7040), and also for amendments to the rule in the December 17, 1999 , issue of the Texas Register ( 24 TexReg 11494).

The RQ establishes what should be reported as soon as practicable within the 24

- hour timeframe provided in THSC , §382.0215

. The RQs are not intended to represent a judgment as to the specific degree of hazard associated with certain releases, but rather function as a mechanism by which the regulated community will know when to notify the commission of unauthorized emissions. When the RQs were first established, the recordkeeping requirements replaced the requirement to report events that do not meet an RQ.

The commission is proposing that there will be no RQ for CO 2 , nitrous oxide (N 2 O) , methane (CH 4 ) , hydrofluorocarbons (HFCs) , perfluorocarbons (PFCs) , or sulfur hexafluoride (SF 6 ) , individually or collectively, except for the HFCs that are listed specifically in the definition of RQ

. The proposed amendments would also exempt reportin g of these six air contaminant compounds as part of a mixture with other air contaminant compounds. Further, any emissions of CO 2 , N 2 O , CH 4 , HFCs , PFCs , or SF 6 , individually or collectively, are not required to be submitted as part of the final record described in §101.201(c) , except for the HFCs that are listed specifically in the definition of RQ

. With regard to GHGs, the commission has found no basis for receiving any reports of excess emissions due to emissions events and therefore proposes to exemp t these fromTexa s Commission on Environmental Quality Page 10 Chapter 101

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reporting under §101.201

. A source which has emissions exceeding PSD GHG permit limits would be subject to recordkeeping for the unauthorized emissions of GHGs and other pollutants. If an RQ was exceeded, reporting under §101.201 is required for pollutants other than GHGs (except the HFCs specifically listed). All unauthorized
emissions would also be considered Title V deviations and would be required to be included in semi

- annual reporting required in Chapter 122.

Unauthorized emissions are defined as exceeding a permit limit, rule, or order of the
commission. A source that is not required to have a PSD GHG permit does not have a limit for which unauthorized emissions can be evaluated and therefore will not, by definition, have an emissions e vent of GHGs. Consequently, there is no recordkeeping requirement for unauthorized emissions of GHGs for a source that is not required to have a PSD GHG permit. However, recordkeeping of unauthorized emissions of other pollutants remains a requirement, and reporting under §101.201 may be required

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The commission is also proposing to repeal CO 2 and CH 4 from the definition of

" U nauthorized emissions "

. By removing the terms, these two GHGs will no longer be exempted from the definition of unauthorized emissions. Because no GHGs will be listed in the exception, all GHGs would be considered as unauthorized emissions if they exceed any air emission limitation in a permit, rule, or order of the commission or as authorized by Texas Clean Air Act (TCAA), THSC , §382.0518(g).Texa s Commission on Environmental Quality Page 11 Chapter 101

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§ 101.10 , Emissions Inventory Requirements Implementation of HB 788 also necessitates the amendment of § 1 01.10. Owners and operators of accounts that are currently required to submit an annual emissions inventory include any source that meets the definition of a major facility or major stationary source as defined in §116.12 , or a source that emits or has the potential to emit 100 tons per year ( tpy ) of a contaminant. Under these requirements, a small source emitting 100 t py of GHGs would be required to submit an annual emissions inventory. It is not the
commission ' s intent to require these small

- emitting sources to submit emissions inventories because this additional data would not contribute substantially to the inventory , and the commission could not administratively process the additional number of inventories received. Therefore, an exception to this 100 tpy reporting threshold is proposed for §101.10 (a)( 3 ) for emissions of GHGs

. Only major sources required to obtain a PSD permit (at the thresholds proposed in new §116.164) would be required to submit an inventory.

Under the proposed revisions, owners and operators of accounts that include s ources that are required to obtain a PSD permit for GHGs would be required to su bmit an initial emissions inventory and annual emissions inventory update required under subsection (b). At this time, the commission does not propose requiring the reporting of emissions of GHG s from any source required to submit an emissions inventory pe r §101.10 unlessTexa s Commission on Environmental Quality Page 12 Chapter 101

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otherwise required through future rulemaking or specifically requested under the authority of §101.10(b)(3) , special inventories as part of any future analysis to assess additional emissions fees to fun HB 788

. Owners and operators that ar e required to submit an annual emissions inventory are required to report emissions of all pollutants listed in §101.10(b)(1). GHGs are not included in §101.10(b)(1).

§ 101.27 , Emissions Fees Implementation of HB 788 also necess itates the amendment of § 10 1.27. Emissions fees are collected each fiscal year from regulated entities subject to federal operating permits under Chapter 122 (Federal Operating Permits Program, commonly referred to as Title V permitting). The fees are based on actual or authorized emissions of all regulated pollutants emitted from these sites including emissions of criteria pollutants, hazardous air pollutants, and other regulated emissions up to a cap of 4,000 tons per pollutant.

The emissions fee rule allows the rate to be adjust ed annually in a range of $25 to $45 dollars per ton. This flexibility allows the agency to collect revenue necessary to fully fund the Title V program. The base rate is currently set at $2 5 per ton which resulted in an adjusted rate of $4 7

. 49 per ton for fiscal year 201 4

.

T he proposed amendment to §101.27 exclude s the GHGs defined in proposed amendment to §101.1 from fee collection requirements. However, sources that are required to obtain aTexa s Commission on Environmental Quality Page 13 Chapter 101

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Title V permit because of emissions of GHGs would be required to pay emissions fees on

non
- GHG pollutants. Owners or operators of these sources will pay fees on emissions of any pollutant subject to FCAA, §111; any pollutant listed as a hazardous air pollutant under FCAA, §112; each pollutant that a national primary am bient air quality standard has been promulgated (including carbon monoxide); and any other air pollutant subject to requirements under commission rules, regulations, permits, orders of the commission, or court orders. For purposes of §101.27 only , the term "regulated pollutant" does not include the individual GHGs as listed in the definition §101.1; thus excluding the GHGs from the emissions fee. The current and projected fees are anticipated to cover the cost of the program in the near term.

Proposed New Reportable Quantity for Fire Protection Fluid In addition to the changes in Chapter 101 to implement HB 788, the commission is proposing to add a new RQ for 3

- Pentanone, 1,1,1,2,2,4,5,5,5

- nonafluoro

- 4

- (trifluoromethyl)

- , CAS No. 756

- 13

- 8 (hereafter C6 fluoroketone) in §101.1

. On May 22, 2013, the c ommission approved a rulemaking petition from 3M Company filed on April 1, 2013 ( Docket Number 2013

- 0700

- RUL ) , requesting that its fire protection fluid be listed in §101.1(88), to establish a n RQ of 5,000 pou nds instead of the default RQ of 100 pounds. The chemical is sold as 3MTM NovecTM 1230 Fire Protection Fluid. According to the petition, the fluid is " used to extinguish fires in high valued assets " that cannot be protected with water.Texa s Commission on Environmental Quality Page 14 Chapter 101

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The proposed new RQ would increase the reporting threshold for C6 fluoroketone. In considering reportable quantities, the TCEQ considers toxicological effects, photochemical reactivity for producing ozone, and its intent of limiting emissions events reports to the most signif icant events. C6 fluoroketone is neither a criteria pollutant nor a precursor of ozone, and therefore the 100

- pound default for nonattainment and maintenance areas should not apply.

No signs of acute toxicity were observed in rats exposed to 100,000 parts per million (ppm) C6 fluoroketone for up to four hours. The " no observed adverse effect " level for acute toxicity in rats was 100,000 ppm or 10%. Other toxicity studies have concluded that C6 fluoroketone is only minimally irritating to the eye, non

- irritating to the skin, and does
not cause sensitization. There have been no complaints of adverse health effects from human experience with exposures to C6 fluoroketone. C6 fluoroketone is safe to the public

w

hen discharged in the event of a fire. C6 fluoroketone was approved by the EPA in 2002 (67 FR 77931) as an acceptable substitute for ozone

- depleting substances, such as halon 1301, for use in fire suppression

.

S ection by Section Discussion §101.1, Definitions The commission proposes to amend §101.1 to add the definition of GHGs , set an RQ for aTexa s Commission on Environmental Quality Page 15 Chapter 101

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compound in response to a rulemaking petition, provide that there is no RQ for GHGs (except for the specific individual air contaminant compounds found in th e current RQ definition), amend the definition of unauthorized emissions to exclude CO 2 and CH 4 , and make nonsubstantive revisions including renumbering and clarifying references.

The commission proposes §101.1(42) to add a definition of the pollutant GHG s and to appropriately renumber the paragraphs of §101.1. The proposed definition would establish that the pollutant GHGs is an aggregate group of six GHGs including: CO 2 , N 2 O, CH 4 , HFCs, PFCs, and SF 6 . This proposed definition is consistent with EPA's def inition in 40 Code of Federal Regulations ( CFR ) §51.166(b)(48). HFCs are compounds containing only hydrogen, fluorine, and carbon atoms. PFCs are compounds containing only carbon and fluorine atoms. Other gases that are considered GHGs are not included in the definition of the pollutant GHGs.

The commission also proposes to add a new RQ of 5,000 lbs in §101.1(89)(A)(i)(III)(

- aaa
- ) for 3

- Pentanone, 1,1,1,2,2,4,5,5,5

- nonafluoro

- 4

- (trifluoromethyl)

- , CAS No. 756

- 13

- 8. The proposed new RQ would increase the reporting threshold for C6 fluoroketone. In considering reportable quantities, the TCEQ considered toxicological effects, photochemical reactivity for producing ozone, and its intent of limiting emissions events reports to the most sign ificant events. C6 fluoroketone is neither a criteria pollutant nor a precursor of ozone, and therefore the 100

- pound default for nonattainment andTexa s Commission on Environmental Quality Page 16 Chapter 101

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maintenance areas should not apply.

No signs of acute toxicity were observed in rats exposed to 100,000 pp m C6 fluoroketone for up to four hours. The "no observed adverse effect" level for acute toxicity in rats was 100,000 ppm or 10%. Other toxicity studies have concluded that C6 fluoroketone is only minimally irritating to the eye, non

- irritating to the skin , and does not cause sensitization. There have been no complaints of adverse health effects from human experience with exposures to C6 fluoroketone. C6 fluoroketone is safe to the public when discharged in the event of a fire. C6 fluoroketone was approved by the EPA in 2002 (67 FR 77931) as an acceptable substitute for ozone

- depleting substances, such as halon 1301, for use in fire suppression

.

The commission also proposes to add §101.1(89) ( A ) ( iii ) to provide that there would be no RQ for GHGs, except for the specific individual air contaminant compounds found in the current RQ definition. A source which has emissions exceeding PSD GHG permit limits would be subject to recordkeeping for unauthorized emissions of GHGs and other pollutants. All unauthorized emissions would also be considered Title V deviations and would be required to be included in semi

- annual reporting required in Chapter 122.

Unauthorized emissions are defined as exceeding a permit limit, rule, or order of the
commission. A source that is not required to have a PSD GHG permit does not have a limitTexa s Commission on Environmental Quality Page 17 Chapter 101

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for which unauthorized emissions can be evaluated and therefore will not, by definition, have an emissions event of GHGs. Consequently, there is no recordkeeping requirement for unauthorized emis sions of GHGs for a source that is not required to have a PSD GHG permit. However, recordkeeping of unauthorized emissions of other pollutants remains a requirement, and reporting under §101.201 may be required.

In proposed §101.1(108), the commission remove s the words " carbon dioxide " and

" methane " from the definition of " U nauthorized emissions " because these will now be regulated as GHGs. By removing the terms, these two GHGs will no longer be exempted from the definition of unauthorized emissions. Be cause no GHGs will be listed in the exception, all GHGs would be considered as unauthorized emissions if they exceed any air emission limitation in a permit, rule, or order of the commission or as authorized by Texas Clean Air Act (TCAA) , THSC, §382.0518(g ).

In §101.1(25), the commission proposes nonsubstantive amendments to clarify the referenced rule is in the Code of Federal Regulations (CFR). In § 101.1(61), the commission proposes nonsubstantive amendments to the definition of mobile emissions reducti on credit. The added clarifying language provides the title of the referenced division, Emission Credit Banking and Trading. The commission proposes nonsubstantive amendments to the definition of particulate matter emissions, to clarify the chemical formul a NO X refers to nitrogen oxides in § 101.1(77). The commission also proposes amendments in §101.1(89)Texa s Commission on Environmental Quality Page 18 Chapter 101

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correcting CFR to CFC for four air contaminant compounds.

§101.10, Emissions Inventory Requirements The commission proposes to amend §101.10 (a)( 3 ) by adding an exception for GHGs (as listed in the proposed amendment to §101.1) to the applicable criteria for which an owner or operator is required to submit emissions inventories. Specifically, the exception is added to the requirement for any account that emits or has the potential to emit 100 tons per year (tpy) or more of any contaminant.

T he commission also proposes non substantive revisions for this section. Subsection (a) is proposed to be renumbered to reflect the subsection reorganization for c larity

. Subsection (b) has been updated to reflect the renumbering in subsection (a). The title of § 116 .12 was updated in sub section (a)(1) to " Nonattainment and Prevention of Significant Deterioration Review Definitions " to reflect the current title of th e rule. In subsection (a)(4) the acronym for Federal Clean Air Act was expanded for clarification. In subsections (b)(3) and (e) the word i ndustrial was removed from the name of the " Emissions Assessment Section " to reflect its current name. Subsection (f) was updated to reflect the current enforcement authority for completing an emissions inventory

. Enforcement by appropriate action includes Texas Water Code (TWC) , § 7.002 for administrative penalties, § 7.101 for civil penalties, and § 7.178 for criminal penalties.Texa s Commission on Environmental Quality Page 19 Chapter 101

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§101.27, Emissions Fees The commission propose s to amend sub section (f)(3) by excepting GHGs as defined in §1 01 .1 fro m the term "regulated pollutant " for the purposes of §101.27. This change is necessary to exempt GHGs from the list of polluta nts subject to fees. GHGs are being exempted because certain GHGs, like CO 2 , are emitted in such large quantities that the resulting fee collection would be in excess of current near

- term program funding requirements.

Existing sites in Texas will become subject to the Title V federal operating permits program on the effective date of EPA's final action approving the revisions to the Federal Operating Permits Program or approving revision of §122.122 into the SIP, whichever is later. For example, if the la ter of the two actions is effective on or before August 31, 2014 (the end of Fiscal Year 2014), existing sources which meet or exceed the Title V major source thresholds in proposed § 122.122(14)(H) will become subject to emissions fees on that day. Since f ees for Fiscal Year 2014 would have already been invoiced at that date, an emissions fee for Fiscal Year 2014 for these sources would be assessed as soon as practical and would be based on emissions of non

- GHGs in calendar year 2012 (or other data allowed per §101.27). If the later of the two EPA actions is effective on or after September 1, 2014 (in Fiscal Year 2015), then these sources will become subject to emissions fees on that day. An emissions fee for Fiscal Year 2015 would typically be invoiced in f all of calendar year 2014Texa s Commission on Environmental Quality Page 20 Chapter 101

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and would be based on emissions of non

- GHGs in calendar year 2013 (or other data allowed per §101.27).

§101.201, Emissions Event Reporting and Recordkeeping Requirements The commission proposes to amend subsection (c) to provide that any emissions of CO 2 , N 2 O , CH 4 , HFCs , PFC s, or SF 6 , individually or collectively, are not required to be submitted as part of the final record under this subsection. This is consistent with the proposed change adding §101.1(89)( A ) (iii) to provide that there would be no RQ for GHGs, except for the specific individual air contaminant compounds found in the current RQ definition.

Fiscal Note : C osts to State and Local Government Nina Chamness, Analyst in the Strategic Planning and Assessment Section, has determined that for the first five

- year period the proposed rules are in effect, no significant fiscal implications are anticipated for the agency as a result of administration or enforcement of the proposed rules. The proposed rules will not have any fisc al implications for other state agencies or units of local government.

The proposed rules would amend Chapter 101 to implement the requirements of HB 788, 83rd Legislature , 2013, as part of a larger rulemaking involving Chapters 39, 55, 106, 116, and 122. This fiscal note only addresses the proposed rules for Chapter 101.Texa s Commission on Environmental Quality Page 21 Chapter 101

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Proposed amendments to implement HB 788 The proposed rules would amend Chapter 101 to clarify that, for emissions event and scheduled MSS rules, all emissions of GHGs are exempt from reporting requirements under §101.201

. The proposed rules also clarify that emission fees will not be assessed on emissions of GHGs. Emissions of GHGs are not currently charged an emission fee in Texas, so this rule change carries forward existing practice. The rule change is necessary because GHGs are becoming a regulated pollutant and therefore would be subject to fees under §101.27 unless this exclusion is added. Note that under existing requirements of §101. 27, sites which are required to obtain a federal operating permit under Chapter 122 as a result of emissions of GHGs will be required to pay a fee on their non

- GHG pollutants. In addition, existing requirements of §101.10 specify that major sources as defi ned in §116.12 are required to submit an emissions inventory, and changes to Chapter 116 as part of this HB 788 implementation will result in additional sources becoming subject to emissions inventory requirements. These fee impacts and emissions inventory impacts are discussed in the fiscal notes for Chapter 122 and Chapter 116, respectively, because the changes to those chapters are what cause those existing requirements of Chapter 101 to apply to major sources of GHGs.

In implementing the previous chang es some specific amendments in the proposed rules include: a definition of GHGs; a revision to the definition of RQs so that emissions of GHGs are not required to be reported for emissions events or scheduled MSS; a revision toTexa s Commission on Environmental Quality Page 22 Chapter 101

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clarify that emissions of GH Gs are not counted towards the 100 tpy emissions inventory criteria in §101.10(a)(3); a change to clarify that GHGs are not considered regulated pollutants under the fee system of §101.27 ; and a change in the definition of unauthorized emissions to clarify that GHGs will be permitted pollutants. The result of the proposed rules (when combined with proposals in other chapters) clarify that emissions of GHGs will not be reportable for emission events purposes, scheduled MSS purposes, or for emissions
inventor ies.

Proposed amendments to respond to a petition Finally, in response to the 3M petition received by the agency, the proposed rules would also establish a 5,000 pound RQ threshold instead of the default 100 pound RQ for C6 fluoroketone (a fire retardant)

.
Fiscal Impact on Governmental Entities Other state agencies and units of local government will not experience any fiscal impacts as a result of the proposed rules for Chapter 101. Current rules have never required the reporting of emissions of GHGs, and the proposed rules clarify that reporting emissions of GHGs will not be required for emissions inventory or under §101.201 for emissions events or unscheduled MSS

. In the case of the proposed RQ for C6 fluoroketone, the proposed rules are expected to have minimal fiscal impact since the compound is expected to be used on very rare occasions and in specific circumstances.Texa s Commission on Environmental Quality Page 23 Chapter 101

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Agency revenue will not increase as a result of the proposed rules, and regulated entities will not be required to pay additional emiss ion fees for emissions of GHGs.

Public Benefits and Costs Ms. Chamness also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be compliance with state law and clarification of reporting requirements for emissions of GHGs.

The proposed rules would amend Chapter 101 to clarify that, for emissions event and scheduled MSS reporting rules, all emissions of GHGs are exempt from reporting requirements under §101.201

. Also, the proposed rules clarify that emission fees will not be assessed on emissions of GHGs, although major Title V sources of GHGs will be required to pay fees on emissions of non

- GHGs under existing rules

. Finally, in resp onse to a petition received by the agency, the proposed rules would also establish a 5,000 pound RQ threshold instead of the default 100 pounds RQ for C6 fluoroketone.

Individuals and businesses will not experience significant fiscal impacts under the
pro posed rules because they are either clarifying in nature, continue current agency reporting requirements for emissions of GHGs or are, as with C6 fluoroketone, expected toTexa s Commission on Environmental Quality Page 24 Chapter 101

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be applicable to very rare circumstances. The proposed Chapter 101 rules are consist ent with changes to be made in other air emission regulations for major sources.

Small B usiness and Micro

- Business Assessment No adverse fiscal implications are anticipated for small or micro

- businesses as a result of the proposed rules because they are either clarifying in nature, continue current agency reporting requirements for emissions of GHGs, or are, as with C6 fluoroketo ne, expected to be applicable to very rare circumstances.

S mall Business Regulatory Flexibility Analysis The commission has reviewed this proposed rulemaking and determined that a small business regulatory flexibility analysis is not required because the proposed rules are required to comply with state law and do not adversely affect a small or micro

- business in a material way for the first five years that the proposed rules are in effect.

Local Employment Impact Statement The commission has reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.Texa s Commission on Environmental Quality Page 25 Chapter 101

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D raft R egulat ory I mpact A nalysis D etermination The commission reviewed the proposed rulemaking in light of the regulatory impact analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking does not meet the definition of a major envi ronmental rule as defined in that statute, and in addition, if it did meet the definition, would not be subject to the requirement to prepare a regulatory impact analysis.

A major environmental rule means a rule, the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure, and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the sta te or a sector of the state. The specific intent of the proposed rulemaking is to implement HB 788 by adding a definition of the pollutant GHG s as an aggregate group of six GHGs including: CO 2 , N 2 O, CH 4 , HFCs, PFCs, and SF 6 ; and establishing a new reportab le quantity for fire protection fluid, 3

- Pentanone, 1,1,1,2,2,4,5,5,5

- nonafluoro

- 4

- (trifluoromethyl)

- , CAS No. 756

- 13

- 8. Further, the rulemaking is intended to clarify how the regulation of GHGs is implemented in the emission s inventory and emission s fee requirements of the commission's rules.

Additionally, even if the rules met the definition of a major environmental rule, the rulemaking does not meet any of the four applicability criteria for requiring a regulatoryTexa s Commission on Environmental Quality Page 26 Chapter 101

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impact analysis for a major envir onmental rule, which are listed in Texas Government Code, §2001.0225(a). Texas Government Code, §2001.0225, applies only to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically requ ired by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal govern ment to implement a state and federal program; or 4) adopt a rule solely under the general powers of the agency instead of under a specific state law.

The proposed rules would implement requirements of the FCAA. Under 42 United States Code (USC), §7410, e ach state is required to adopt and implement a SIP containing adequate provisions to implement, attain, maintain, and enforce the NAAQS within the
state. One of the requirements of 42 USC, §7410 is for states to include programs for the regulation of the m odification and construction of any stationary source within the area covered by the plan as necessary to assure that the NAAQS are achieved, including a permit program as required in FCAA, Parts C and D, or NSR. This rulemaking will implement provisions i n HB 788 to establish the TCEQ as the permitting authority for major sources of emissions of GHGs in Texas and to do so consistent with federal law. Specifically, the amendments to Chapter 101 would add a definition of the pollutant GHGs as an aggregate gr oup of six GHGs including: CO 2 , N 2 O, CH 4 , HFCs, PFCs, and SF 6 . Further, the rulemaking is intended to clarify how the regulation of GHGs is implementedTexa s Commission on Environmental Quality Page 27 Chapter 101

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in the emission s inventory and emission s fee requirements of the commission's rules.

The requirement to provide a fiscal analysis of regulations in the Texas Government Code was amended by Senate Bill (SB) 633 , 75th Legislature, 1997. The intent of SB 633 was to require agencies to conduct a regulatory impact analysis of extraordinary rules. These are ide ntified in the statutory language as major environmental rules that will have a material adverse impact and will exceed a requirement of state law, federal law, or a delegated federal program, or are adopted solely under the general powers of the agency. W ith the understanding that this requirement would seldom apply, the commission provided a cost estimate for SB 633 that concluded, "based on an assessment of rules adopted by the agency in the past, it is not anticipated that the bill will have significant fiscal implications for the agency due to its limited application." The commission also noted that the number of rules that would require assessment under the provisions of the bill was not large. This conclusion was based, in part, on the criteria set fo rth in the bill that exempted rules from the full analysis unless the rule was a major environmental rule that exceeds a federal law.

Because of the ongoing need to meet federal requirements, the commission routinely proposes and adopts rules incorporatin g or designed to satisfy specific federal requirements. The legislature is presumed to understand this federal scheme. If each rule proposed by the commission to meet a federal requirement was considered to be a major environmental rule that exceeds federa l law, then each of those rules would require the fullTexa s Commission on Environmental Quality Page 28 Chapter 101

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regulatory impact analysis (RIA) contemplated by SB 633. This conclusion is inconsistent with the conclusions reached by the commission in its cost estimate and by the Legislative Budget Board in its f iscal notes. Since the legislature is presumed to understand the fiscal impacts of the bills it passes, and that presumption is based on information provided by state agencies and the Legislative Budget Board, the commission believes that the intent of SB 633 was only to require the full RIA for rules that are extraordinary in nature. While the proposed rules may have a broad impact, that impact is no greater than is necessary or appropriate to meet the requirements of the FCAA, and thus allow EPA to lift i ts federal permitting program on GHG sources in Texas. In fact, the proposed rules create no additional impacts since major GHG sources in Texas must currently obtain a PSD permits from EPA and the proposed rules merely supplant EPA as the authority for GH G PSD permitting in Texas. For these reasons, the proposed rules fall under the exception in Texas Government Code, §2001.0225(a), because they are required by, and do not exceed, federal law.

The commission has consistently applied this construction to i ts rules since this statute was enacted in 1997. Since that time, the legislature has revised the Texas Government Code, but left this provision substantially unamended. It is presumed that "when an agency interpretation is in effect at the time the legislature amends the laws without making substantial change in the statute, the legislature is deemed to have accepted the agency's interpretation." ( Central Power & Light Co. v. Sharp , 919 S.W.2d 485, 489 (Tex. App.Texa s Commission on Environmental Quality Page 29 Chapter 101

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Austin 1995), writ denied with per cu riam opinion respecting another issue , 960 S.W.2d 617 (Tex. 1997); Bullock v. Marathon Oil Co. , 798 S.W.2d 353, 357 (Tex. App. Austin 1990,
no writ ). Cf. Humble Oil & Refining Co. v. Calvert , 414 S.W.2d 172 (Tex. 1967); Dudney v. State Farm Mut. Auto Ins. Co. , 9 S.W.3d 884, 893 (Tex. App. Austin 2000); Southwestern Life Ins. Co. v. Montemayor , 24 S.W.3d 581 (Tex. App. Austin 2000, pet. denied ); and Coastal Indust. Water Auth. v. Trinity Portland Cement Div. , 563 S.W.2d 916 (Tex. 1978))

.

The commission's in terpretation of the RIA requirements is also supported by a change made to the Administrative Procedure Act (APA) by the legislature in 1999. In an attempt to limit the number of rule challenges based upon APA requirements, the legislature clarified that s tate agencies are required to meet these sections of the APA against the standard of "substantial compliance" (Texas Government Code, §2001.035). The legislature specifically identified Texas Government Code, §2001.0225 as falling under this standard. As d iscussed in this analysis and elsewhere in this preamble, the commission has substantially complied with the requirements of Texas Government Code, §2001.0225.

The proposed rules do not exceed an express requirement in federal or state law. The proposed r ules implement requirements of the FCAA, specifically to adopt and implement SIPs , as well as specific requirements of the TCAA. The specific intent of the proposed rulemaking is to implement HB 788 by adding a definition of the pollutant GHGs as anTexa s Commission on Environmental Quality Page 30 Chapter 101

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aggreg ate group of six GHGs including: CO 2 , N 2 O, CH 4 , HFCs, PFCs, and SF 6 . Further, the rulemaking is intended to clarify how the regulation of GHGs is implemented in the
emission s inventory and emission s fee requirements of the commission's rules. The rulemakin g also would add a new reportable quantity for fire protection fluid, 3

- Pentanone, 1,1,1,2,2,4,5,5,5

- nonafluoro

- 4

- (trifluoromethyl)

- , CAS No. 756

- 13

- 8. The proposed rules do not exceed a requirement of a delegation agreement or any contract between the sta te and a federal agency, because there is no agreement applicable to this rulemaking. The proposed rules were not developed solely under the general powers of the agency, but are authorized by specific sections of THSC, Chapter 382 (also known as the TCAA) , and the TWC, which are cited in the Statutory Authority section of this preamble. Therefore, this proposed rulemaking action is not subject to the regulatory analysis provisions of Texas Government Code, §2001.0225(b).

Written comments on the draft reg ulatory impact analysis determination may be submitted to the contact person at the address listed under the Submittal of Comments section of this preamble.

Takings Impact Assessment Under Texas Government Code, §2007.002(5), taking means a governmental action that affects private real property, in whole or in part or temporarily or permanently, in a manner that requires the governmental entity to compensate the private real propertyTexa s Commission on Environmental Quality Page 31 Chapter 101

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o

wner as provided by the Fifth and Fourteenth Amendments to the United States Constitution or Texas Constitution §17 or §19, Article I; or a governmental action that affects an owner's private real property that is the subject of the governmental action, in whole or in part or temporarily or permanently, in a manner that restricts or limits the owner's right to the property that would otherwise exist in the absence of the governmental action; and is the producing cause of a reduction of at least 25% in the m arket value of the affected private real property, determined by comparing the market value of the property as if the governmental action is not in effect and the market value of the property determined as if the governmental action is in effect.

The comm ission completed a takings impact analysis for the proposed rulemaking under the Texas Government Code, §2007.043. The primary purpose of this proposed rulemaking, as discussed elsewhere in this preamble, is to implement HB 788 by adding a definition of th e pollutant GHG s as an aggregate group of six GHG s including: CO 2 , N 2 O, CH 4 , HFCs, PFCs, and SF 6 . Further, the rulemaking is intended to clarify how the regulation of GHGs is implemented in the emission s inventory and emission s fee requirements of the comm ission's rules. The rulemaking also would add a new reportable quantity for fire protection fluid, 3

- Pentanone, 1,1,1,2,2,4,5,5,5

- nonafluoro

- 4

- (trifluoromethyl)

- , CAS No. 756

- 13

- 8.

The proposed rules will not create any additional burden on private real p roperty. TheTexa s Commission on Environmental Quality Page 32 Chapter 101

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proposed rules will not affect private real property in a manner that would require compensation to private real property owners under the United States Constitution or the Texas Constitution. The proposal also will not affect private real pro perty in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of the governmental action. Therefore, the proposed rulemaking will not cause a taking under Texas Government Code, Chapter 2007.

Consis tency with the Coastal Management Program The commission determined that this rulemaking relates to an action or actions subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as amended (Texas Natura l Resources Code, §§33.201 et seq.), and the commission rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the CMP. As required by §281.45(a)(3) and 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the Coastal Management P rogram, commission rules governing air pollutant emissions must be consistent with the applicable goals and policies of the CMP. The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with the rules of the Coa stal Coordination Advisory Committee and determined that the rulemaking is consistent with the applicable CMP goals and policies. The CMP goal applicable to this rulemaking is the goal to protect, preserve, and enhance the diversity, quality, quantity, fun ctions, and values of coastal natural resource areas (31 TAC §501.12(l)). The proposed rules update rules that govern the submittal of air qualityTexa s Commission on Environmental Quality Page 33 Chapter 101

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PSD and Title V GHG permit applications and associated emissions of GHGs. The CMP policy applicable to this r ulemaking is the policy that commission rules comply with federal regulations in 40 CFR, to protect and enhance air quality in the coastal areas (31 TAC §501.14(q)). This rulemaking complies with 40 CFR Part 51, Requirements for Preparation, Adoption, and Submittal of Implementation Plans. Therefore, in accordance with 31 TAC §505.22(e), the commission affirms that this rulemaking is consistent with CMP goals and policies.

Written comments on the consistency of this rulemaking may be submitted to the conta ct person at the address listed under the Submittal of Comments section of this preamble.

Effect on Sites S ubject to the Federal Operating Permits P rogram Sections 101.1 and 101.10 are applicable requirements in the Federal Operating Permits Program (Chapter 122). However, the proposed rules, if adopted, would not require any revisions to federal operating permits.

A nnouncement of Hearing The commission will hold a public hearing on this proposal in Austin on December 5, 2013, at 2:00 p

. m
. in Buildin g E, Room 201S, at the commission's central office located at 12100 Park 35 Circle. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order ofTexa s Commission on Environmental Quality Page 34 Chapter 101

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registrati on. Open discussion will not be permitted during the hearing; however, commission staff members will be available to discuss the proposal 30 minutes prior to the hearing.

Persons who have special communication or other accommodation needs who are planning to attend the hearing should contact Sandy Wong, Office of Legal Services at (512) 239

- 1802. Requests should be made as far in advance as possible.

S ubmittal of Comments Written comments may be submitted to Charlotte Horn, MC 205, Office of Legal Service s, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711

- 3087, or faxed to (512) 239

- 4808. Electronic comments may be submitted at: http://www5.tceq.texas.gov/rules/ecomments/

. File size restrictions may apply to comments being sub mitted via the eComments system. All comments should reference Rule Project Number 2013

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- AI. The comment period closes December 9, 2013. Copies of the proposed rulemaking can be obtained from the commission's Web site at http://www.tceq.texas.gov/na v/rules/propose_adopt.html

. For further information, please contact Tasha Burns, Operational Support, Air Permits Division at (512) 239

- 5868.Texa s Commission on Environmental Quality Page 35 Chapter 101

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SUBCHAPTER A: GENERAL RULES §§101. 1, 101.1 0 , 101.2 7

Statutory Authority The amendments are proposed under Texas Water Code (TWC), §5.102, concerning General Powers, which provides the commission with the general powers to carry out its duties under the TWC; TWC, §5.103, concerning Rules, and TWC, §5.105, concerning General Pol icy, which authorize the commission to adopt rules necessary to carry out its powers and duties under the TWC; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the pol icy and purposes of the Texas Clean Air Act. The amendments are also proposed under THSC, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public h ealth, general welfare, and physical property; THSC, §382.011, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; THSC, §382.012, concerning State Air Control Plan, which authorizes the
commissi on to prepare and develop a general, comprehensive plan for the control of the state's air; THSC, §382.014, concerning Emission Inventory, which authorizes the commission to require submittal of information regarding emissions of air contaminants; THSC, §3 82.016, concerning Monitoring Requirements; Examination of Records, which authorizes the commission to prescribe requirements for measuring, monitoring, andTexa s Commission on Environmental Quality Page 36 Chapter 101

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maintaining records of emissions of air contaminants; THSC, §382.0215, concerning Assessment of Emi ssions Due to Emissions Events, which authorizes the commission to collect and assess unauthorized emissions data due to emissions events; THSC, §382.0216, concerning Regulation of Emissions Events, which authorizes the commission to establish criteria for determining when emissions events are excessive and to require facilities to take action to reduce emissions from excessive emissions events; THSC, §382.05102, concerning Permitting Authority of Commission; Greenhouse Gas Emissions, which relates to the p ermitting authority of the commission for greenhouse gas emissions; THSC, § 382.062, concerning Application, Permit and Inspection Fees, which authorizes the commission to charge these types of fees; and THSC, §382.085, concerning Unauthorized Emissions Pro hibited, which prohibits emissions of air contaminants except as authorized by commission by rule or order. The amendments are also proposed under Texas Government Code, §2006.004, concerning Requirements to Adopt Rules of Practice and Index Rules, Orders, Decisions, which requires state agencies to adopt procedural rules; and Texas Government Code, §2001.006, concerning Actions Prepatory to Implementation of Statute or Rule, which authorizes state agencies to adopt rules or take other administrative action that the agency deems necessary to implement legislation. The amendments are also proposed under Federal Clean Air Act (FCAA), 42 United States Code (USC), §§7401, et seq ., which requires states to submit state implementation plan revisions that specify t he manner in which the national ambient air quality standards will be achieved and maintained within each air quality control region of the state.Texa s Commission on Environmental Quality Page 37 Chapter 101

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The proposed amendments implement House Bill 788 , 82nd Legislature, 2013, THSC, §§382.002, 382.011, 382.012, 382.014, 382.016, 382.0215 , 382.0216, 382.05102, and 382.062; and Texas Government Code, §2001.004 and §2001.006; and FCAA, 42 USC, §§7401 et seq

.

§101.1. Definitions.

Unless specifically defined in the Texas Clean Air Act (TCAA) or in the rules of the commission, the terms used by the commission have the meanings commonly ascribed to them in the field of air pollution control. In addition to the terms that are defined b y the TCAA, the following terms, when used in the air quality rules in this title, have the following meanings, unless the context clearly indicates otherwise.

(1) Account

-- For those sources required to be permitted under Chapter 122 of this title (relat ing to Federal Operating Permits Program), all sources that are aggregated as a site. For all other sources, any combination of sources under common ownership or control and located on one or more contiguous properties, or properties contiguous except for intervening roads, railroads, rights

- of

- way, waterways, or similar divisions.Texa s Commission on Environmental Quality Page 38 Chapter 101

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(2) Acid gas flare

-- A flare used exclusively for the incineration of hydrogen sulfide and other acidic gases derived from natural gas sweetening processes.

(3) Agency establi shed facility identification number

-- For the purposes of Subchapter F of this chapter (relating to Emissions Events and Scheduled Maintenance, Startup, and Shutdown Activities), a unique alphanumeric code required to be assigned by the owner or operator of a regulated entity that the emission inventory reporting requirements of §101.10 of this title (relating to Emissions Inventory Requirements) are applicable to each facility at that regulated entity.

(4) Ambient air

-- That portion of the atmosphere, exte rnal to buildings, to which the general public has access.

(5) Background

-- Background concentration, the level of air contaminants that cannot be reduced by controlling emissions from man

- made sources. It is determined by measuring levels in non

- urban ar eas.

(6) Boiler

-- Any combustion equipment fired with solid, liquid, and/or gaseous fuel used to produce steam or to heat water.Texa s Commission on Environmental Quality Page 39 Chapter 101

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(7) Capture system

-- All equipment (including, but not limited to, hoods, ducts, fans, booths, ovens, dryers, etc.) that cont ains, collects, and transports an air pollutant to a control device.

(8) Captured facility

-- A manufacturing or production facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, or disposed of on a shared basis in an integrated waste management unit owned, operated by, and located within a contiguous manufacturing complex.

(9) Carbon adsorber

-- An add

- on control device that uses activated carbon to adsorb volatile organic compounds from a gas stream.

(1 0) Carbon adsorption system

-- A carbon adsorber with an inlet and outlet for exhaust gases and a system to regenerate the saturated adsorbent.

(11) Coating

-- A material applied onto or impregnated into a substrate for protective, decorative, or functional purposes. Such materials include, but are not limited to, paints, varnishes, sealants, adhesives, thinners, diluents, inks, maskants, and temporary protective coatings.Texa s Commission on Environmental Quality Page 40 Chapter 101

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(12) Cold solvent cleaning

-- A batch process that uses liquid solvent to remove soils from the surfaces of parts or to dry the parts by spraying, brushing, flushing, and/or immersion while maintaining the solvent below its boiling point. Wipe cleaning (hand cleaning) is not included in this definition.

(13) Combustion unit

-- Any boiler plant, furnace, incinerator, flare, engine, or other device or system used to oxidize solid, liquid, or gaseous fuels, but excluding motors and engines used in propelling land, water, and air vehicles.

(14) Combustion tur bine

-- Any gas turbine system that is gas and/or liquid fuel fired with or without power augmentation. This unit is either attached to a foundation or is portable equipment operated at a specific minor or major source for more than 90 days in any 12

- month p eriod. Two or more gas turbines powering one shaft will be treated
as one unit.

(15) Commercial hazardous waste management facility

-- Any hazardous waste management facility that accepts hazardous waste or polychlorinated biphenyl compounds for a charge, except a captured facility that disposes only waste generated on

- site or a facility that accepts waste only from other facilities owned or effectively controlled by the
same person.Texa s Commission on Environmental Quality Page 41 Chapter 101

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(16) Commercial incinerator

-- An incinerator used to dispose of waste
mat erial from retail and wholesale trade establishments.

(17) Commercial medical waste incinerator

-- A facility that accepts for incineration medical waste generated outside the property boundaries of the facility.

(18) Component

-- A piece of equipment, inc luding, but not limited to, pumps, valves, compressors, and pressure relief valves that has the potential to leak volatile organic compounds.

(19) Condensate

-- Liquids that result from the cooling and/or pressure changes of produced natural gas. Once thes e liquids are processed at gas plants or refineries or in any other manner, they are no longer considered condensates.

(20) Construction

- demolition waste

-- Waste resulting from construction or demolition projects.

(21) Control system or control device

-- Any part, chemical, machine, equipment, contrivance, or combination of same, used to destroy, eliminate, reduce, or control the emission of air contaminants to the atmosphere.Texa s Commission on Environmental Quality Page 42 Chapter 101

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(22) Conveyorized degreasing

-- A solvent cleaning process that uses an
automate d parts handling system, typically a conveyor, to automatically provide a continuous supply of parts to be cleaned or dried using either cold solvent or vaporized solvent. A conveyorized degreasing process is fully enclosed except for the conveyor inlet

an d exit portals.

(23) Criteria pollutant or standard

-- Any pollutant for which there is a national ambient air quality standard established under 40 Code of Federal Regulations Part 50.

(24) Custody transfer

-- The transfer of produced crude oil and/or con densate, after processing and/or treating in the producing operations, from storage tanks or automatic transfer facilities to pipelines or any other forms of transportation.

(25) De minimis impact

-- A change in ground level concentration of an air
contami nant as a result of the operation of any new major stationary source or of the operation of any existing source that has undergone a major modification that does not exceed the significance levels as specified in 40 Code of Federal Regulations [(CFR)] §51. 165(b)(2).Texa s Commission on Environmental Quality Page 43 Chapter 101

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(26) Domestic wastes

-- The garbage and rubbish normally resulting from the functions of life within a residence.

(27) Emissions banking

-- A system for recording emissions reduction credits so they may be used or transferred for future use.

(28) Emissions event

-- Any upset event or unscheduled maintenance, startup, or shutdown activity, from a common cause that results in unauthorized emissions of air contaminants from one or more emissions points at a regulated entity.

(29) Emissions reduct ion credit

-- Any stationary source emissions reduction that has been banked in accordance with Chapter 101, Subchapter H, Division 1 of this title (relating to Emission Credit Banking and Trading).

(30) Emissions reduction credit certificate

-- The certific ate issued by the executive director that indicates the amount of qualified reduction available for use as offsets and the length of time the reduction is eligible for use.

(31) Emissions unit

-- Any part of a stationary source that emits, or would have th e potential to emit, any pollutant subject to regulation under the Federal Clean Air Act.Texa s Commission on Environmental Quality Page 44 Chapter 101

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(32) Excess opacity event

-- When an opacity reading is equal to or exceeds 15 additional percentage points above an applicable opacity limit, averaged over a six

- min ute period.

(33) Exempt solvent

-- Those carbon compounds or mixtures of carbon compounds used as solvents that have been excluded from the definition of volatile organic compound.

(34) External floating roof

-- A cover or roof in an open top tank that res ts upon or is floated upon the liquid being contained and is equipped with a single or double seal to close the space between the roof edge and tank shell. A double seal consists of two complete and separate closure seals, one above the other, containing a n enclosed space between them.

(35) Federal motor vehicle regulation

-- Control of Air Pollution from Motor Vehicles and Motor Vehicle Engines, 40 Code of Federal Regulations Part 85.

(36) Federally enforceable

-- All limitations and conditions that are

en forceable by the United States Environmental Protection Agency administrator, including those requirements developed under 40 Code of Federal Regulations (CFR) PartsTexa s Commission on Environmental Quality Page 45 Chapter 101

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60 and 61; requirements within any applicable state implementation plan (SIP); and any
per mit requirements established under 40 CFR §52.21 or under regulations approved under 40 CFR Part 51, Subpart 1, including operating permits issued under the approved program that is incorporated into the SIP and that expressly requires adherence to any
per mit issued under such program.

(37) Flare

-- An open combustion unit (i.e., lacking an enclosed combustion chamber) whose combustion air is provided by uncontrolled ambient air around the flame, and that is used as a control device. A flare may be equipped with a radiant heat shield (with or without a refractory lining), but is not equipped with a flame air control damping system to control the air/fuel mixture. In addition, a flare may also use auxiliary fuel. The combustion flame may be elevated or at gro und level. A vapor combustor, as defined in this section, is not considered a flare.

(38) Fuel oil

-- Any oil meeting the American Society for Testing and Materials (ASTM) specifications for fuel oil in ASTM D396

- 01, Standard Specifications for Fuel Oils, revised 2001. This includes fuel oil grades 1, 1 (Low Sulfur), 2, 2 (Low Sulfur), 4 (Light), 4, 5 (Light), 5 (Heavy), and 6.Texa s Commission on Environmental Quality Page 46 Chapter 101

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(39) Fugitive emission

-- Any gaseous or particulate contaminant entering the atmosphere that could not reasonably pass through a s tack, chimney, vent, or other functionally equivalent opening designed to direct or control its flow.

(40) Garbage

-- Solid waste consisting of putrescible animal and vegetable waste materials resulting from the handling, preparation, cooking, and consumpt ion of food, including waste materials from markets, storage facilities, and handling and sale of produce and other food products.

(41) Gasoline

-- Any petroleum distillate having a Reid vapor pressure of four pounds per square inch (27.6 kilopascals) or greater that is produced for use as a motor fuel, and is commonly called gasoline.

(42) Greenhouse gases

-- the aggregate group of s ix greenhouse gases: carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

(43) [(42)] Hazardous wastes

-- Any solid waste identified or listed as a hazardous waste by th e administrator of the United States Environmental Protection Agency under the federal Solid Waste Disposal Act, as amended by Resource Conservation and Recovery Act, 42 United States Code, §§6901 et seq ., as amended.Texa s Commission on Environmental Quality Page 47 Chapter 101

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(44) [(43)] Heatset (used in offset lithographic printing)

-- Any operation where heat is required to evaporate ink oil from the printing ink. Hot air dryers are used to deliver the heat.

(45) [(44)] High

- bake coatings

-- Coatings designed to cure at temperatures above 194 degrees Fahrenheit.

(46) [(45)] High

- volume low

- pressure spray guns

-- Equipment used to apply coatings by means of a spray gun that operates between 0.1 and 10.0 pounds per square inch gauge air pressure measured at the air cap.

(47) [(46)] Incinerator

-- An enclosed combust ion apparatus and attachments that is used in the process of burning wastes for the primary purpose of reducing its volume and weight by removing the combustibles of the waste and is equipped with a flue for conducting products of combustion to the atmosph ere. Any combustion device that burns 10% or more of solid waste on a total British thermal unit (Btu) heat input basis averaged over any one

- hour period is considered to be an incinerator. A combustion device without instrumentation or methodology to dete rmine hourly flow rates of solid waste and burning 1.0% or more of solid waste on a total Btu heat input basis averaged annually is also considered to be an incinerator. An open

- trench type (with closed ends) combustionTexa s Commission on Environmental Quality Page 48 Chapter 101

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unit may be considered an incinerato r when approved by the executive director. Devices burning untreated wood scraps, waste wood, or sludge from the treatment of wastewater from the process mills as a primary fuel for heat recovery are not included under this definition. Combustion devices p ermitted under this title as combustion devices other than incinerators will not be considered incinerators for application of any rule within this title provided they are installed and operated in compliance with the condition of all applicable permits.

(48) [(47)] Industrial boiler

-- A boiler located on the site of a facility engaged in a manufacturing process where substances are transformed into new products, including the component parts of products, by mechanical or chemical processes.

(49) [(48)] Industrial furnace

-- Cement kilns; lime kilns; aggregate kilns; phosphate kilns; coke ovens; blast furnaces; smelting, melting, or refining furnaces, including pyrometallurgical devices such as cupolas, reverberator furnaces, sintering machines, roasters, o r foundry furnaces; titanium dioxide chloride process oxidation reactors; methane reforming furnaces; pulping recovery furnaces; combustion devices used in the recovery of sulfur values from spent sulfuric acid; and other devices the commission may list.Texa s Commission on Environmental Quality Page 49 Chapter 101

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(50) [(49)] Industrial solid waste

-- Solid waste resulting from, or incidental to, any process of industry or manufacturing, or mining or agricultural operations, classified as follows.

(A) Class 1 industrial solid waste or Class 1 waste is any industrial solid waste designated as Class 1 by the executive director as any industrial solid waste or mixture of industrial solid wastes that because of its concentration or physical or chemical characteristics is toxic, corrosive, flammable, a strong sensitizer o r irritant, a generator of sudden pressure by decomposition, heat, or other means, and may pose a substantial present or potential danger to human health or the environment when improperly processed, stored, transported, or otherwise managed, including haz ardous industrial waste, as defined in §335.1 and §335.505 of this title (relating to Definitions and Class 1 Waste Determination).

(B) Class 2 industrial solid waste is any individual solid waste or combination of industrial solid wastes that cannot be described as Class 1 or Class 3, as defined in §335.506 of this title (relating to Class 2 Waste Determination).

(C) Class 3 industrial solid waste is any inert and essentially insoluble industrial solid waste, including materials such as rock, brick, gl ass, dirt, and certainTexa s Commission on Environmental Quality Page 50 Chapter 101

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plastics and rubber, etc., that are not readily decomposable as defined in §335.507 of this title (relating to Class 3 Waste Determination).

(51) [(50)] Internal floating cover

-- A cover or floating roof in a fixed roof tank that re sts upon or is floated upon the liquid being contained, and is equipped with a closure seal or seals to close the space between the cover edge and tank shell.

(52) [(51)] Leak

-- A volatile organic compound concentration greater than 10,000 parts per million by volume or the amount specified by applicable rule, whichever is lower; or the dripping or exuding of process fluid based on sight, smell, or sound.

(53) [(52) ] Liquid fuel

-- A liquid combustible mixture, not derived from hazardous waste, with a heating value of at least 5,000 British thermal units per pound.

(54) [(53)] Liquid

- mounted seal

-- A primary seal mounted in continuous contact with the liquid between t he tank wall and the floating roof around the circumference of the tank.

(55) [(54)] Maintenance area

-- A geographic region of the state previously designated nonattainment under the Federal Clean Air Act Amendments of 1990 and subsequently redesignated t o attainment subject to the requirement to develop aTexa s Commission on Environmental Quality Page 51 Chapter 101

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maintenance plan under 42 United States Code, §7505a, as described in 40 Code of Federal Regulations Part 81 and in pertinent Federal Register notices.

(56) [(55)] Maintenance plan

-- A revision to the a pplicable state implementation plan, meeting the requirements of 42 United States Code, §7505a.

(57) [(56)] Marine vessel

-- Any watercraft used, or capable of being used, as a means of transportation on water, and that is constructed or adapted to carry, or that carries, oil, gasoline, or other volatile organic liquid in bulk as a cargo or cargo residue.

(58) [(57)] Mechanical shoe seal

-- A metal sheet that is held vertically against the storage tank wall by springs or weighted levers and is connected by braces to the floating roof. A flexible coated fabric (envelope) spans the annular space between the metal sheet and the floating roof.

(59) [(58)] Medical waste

-- Waste materials identified by the Department of State Health Services as "special waste fro m health care

- related facilities" and those waste materials commingled and discarded with special waste from health care

- related facilities.

(60) [(59)] Metropolitan Planning Organization

-- That organization designated as being responsible, together with the state, for conducting the continuing,Texa s Commission on Environmental Quality Page 52 Chapter 101

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cooperative, and comprehensive planning process under 23 United States Code (USC), §134 and 49 USC, §1607.

(61) [(60)] Mobile emissions reduction credit

-- The credit obtained from an enforceable, permanent, quanti fiable, and surplus (to other federal and state rules) emissions reduction generated by a mobile source as set forth in Chapter 114, Subchapter F of this title (relating to Vehicle Retirement and Mobile Emission Reduction Credits), and that has been banked in accordance with Subchapter H, Division 1 of this chapter (relating to Emission Credit Banking and Trading)

.

(62) [(61)] Motor vehicle

-- A self

- propelled vehicle designed for transporting persons or property on a street or highway.

(63) [(62)] Motor vehicle fuel dispensing facility

-- Any site where gasoline is dispensed to motor vehicle fuel tanks from stationary storage tanks.

(64) [(63)] Municipal solid waste

-- Solid waste resulting from, or incidental to, municipal, community, commercial, instituti onal, and recreational activities, including garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, and all other solid waste except industrial solid waste.Texa s Commission on Environmental Quality Page 53 Chapter 101

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(65) [(64)] Municipal solid waste facility

-- All contiguous land, structu res, other appurtenances, and improvements on the land used for processing, storing, or disposing of solid waste. A facility may be publicly or privately owned and may consist of several processing, storage, or disposal operational units, e.g., one or more landfills, surface impoundments, or combinations of them.

(66) [(65)] Municipal solid waste landfill

-- A discrete area of land or an excavation that receives household waste and that is not a land application unit, surface impoundment, injection well, or waste pile, as those terms are defined under 40 Code of Federal Regulations §257.2. A municipal solid waste landfill (MSWLF) unit also may receive other types of Resource Conservation and Recovery Act Subtitle D wastes, such as commercial solid waste, non hazardous sludge, conditionally exempt small

- quantity generator waste, and industrial solid waste. Such a landfill may be publicly or privately owned. An MSWLF unit may be a new MSWLF unit, an existing MSWLF unit, or a lateral expansion.

(67) [(66)] National ambient air quality standard

-- Those standards established under 42 United States Code, §7409, including standards for carbon monoxide, lead, nitrogen dioxide, ozone, inhalable particulate matter, and sulfur dioxide.Texa s Commission on Environmental Quality Page 54 Chapter 101

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(68) [(67)] Net ground

- level concentration

-- The concentration of an air contaminant as measured at or beyond the property boundary minus the representative concentration flowing onto a property as measured at any point. Where there is no expected influence of the air contaminan t flowing onto a property from other sources, the net ground level concentration may be determined by a measurement at or beyond the property boundary.

(69) [(68)] New source

-- Any stationary source, the construction or modification of which was commenced after March 5, 1972.

(70) [(69)] Nitrogen oxides (NO X

)

-- The sum of the nitric oxide and nitrogen dioxide in the flue gas or emission point, collectively expressed as nitrogen dioxide.

(71) [(70)] Nonattainment area

-- A defined region within the state t hat is designated by the United States Environmental Protection Agency (EPA) as failing to meet the national ambient air quality standard (NAAQS or standard) for a pollutant for which a standard exists. The EPA will designate the area as nonattainment unde r the provisions of 42 United States Code, §7407(d). For the official list and boundaries of nonattainment areas, see 40 Code of Federal Regulations (CFR) Part 81 and pertinent Federal Register notices. The designations and classifications for the one

- hour ozone national ambient air quality standard in 40 CFR Part 81 were retained for the purpose of anti

- backsliding andTexa s Commission on Environmental Quality Page 55 Chapter 101

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upon determination by the EPA that any requirement is no longer required for purposes of
anti

- backsliding, then that requirement no longer applies.

(72) [(71)] Non

- reportable emissions event

-- Any emissions event that in any 24

- hour period does not result in an unauthorized emission from any emissions point equal to or in excess of the reportable quantity as defined in this section.

(73) [ (72)] Opacity

-- The degree to which an emission of air contaminants obstructs the transmission of light expressed as the percentage of light obstructed as measured by an optical instrument or trained observer.

(74) [(73)] Open

- top vapor degreasing

-- A batc h solvent cleaning process that is open to the air and that uses boiling solvent to create solvent vapor used to clean or dry parts through condensation of the hot solvent vapors on the parts.

(75) [(74)] Outdoor burning

-- Any fire or smoke

- producing proc ess that is not conducted in a combustion unit.

(76) [(75)] Particulate matter

-- Any material, except uncombined water, that exists as a solid or liquid in the atmosphere or in a gas stream at standard conditions.Texa s Commission on Environmental Quality Page 56 Chapter 101

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(A) Particulate matter with diameters l ess than 10 micrometers (PM 10 )

-- Particulate matter with an aerodynamic diameter less than or equal to a nominal ten micrometers as measured by a reference method based on 40 Code of Federal Regulations (CFR) Part 50, Appendix J, and designated in accordanc e with 40 CFR Part 53, or by an equivalent method designated with that Part 53.

(B) Particulate matter with diameters less than 2.5 micrometers (PM2.5 )

-- Particulate matter with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers as m easured by a reference method based on 40 CFR Part 50, Appendix L, and designated in accordance with 40 CFR Part 53, or by an equivalent method designated with that Part 53.

(77) [(76)] Particulate matter emissions

-- All finely

- divided solid or liquid
mat erial, other than uncombined water, emitted to the ambient air as measured by United States Environmental Protection Agency Reference Method 5, as specified at 40 Code of Federal Regulations (CFR) Part 60, Appendix A, modified to include particulate caught by an impinger train; by an equivalent or alternative method, as specified at 40 CFR Part 51; or by a test method specified in an approved state implementation plan.

(A) Direct PM emissions

-- Solid particles emitted directly from an air
emissions source or activity, or gaseous emissions or liquid droplets from an air emissionsTexa s Commission on Environmental Quality Page 57 Chapter 101

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source or activity which condense to form particulate matter at ambient temperatures. Direct 2.5 micrometers (PM2.5 ) emissions include elemental carbon, directly emitted organic ca rbon, directly emitted sulfate, directly emitted nitrate, and other inorganic particles (including but not limited to crustal materials, metals, and sea salt).

(B) Secondary PM emissions

-- Those air pollutants other than PM2.5 direct emissions that contribute to the formation of PM2.5 . PM2.5 precursors include sulfur dioxide (SO 2 ), nitrogen oxides ( NO X

) , volatile organic compounds, and ammonia.

(78) [(77)] Petroleum refinery

-- Any facility engaged in producing gasoline, kerosene, distillate fuel oi ls, residual fuel oils, lubricants, or other products through distillation of crude oil, or through the redistillation, cracking, extraction, reforming, or other processing of unfinished petroleum derivatives.

(79) [(78)] PM2.5 emissions

-- Finely

- divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or alternative method specified in 40 Code of Federal Regulatio ns Part 51, or by a test method approved under a state implementation plan or under a United States Environmental Protection Agency delegation or approval.Texa s Commission on Environmental Quality Page 58 Chapter 101

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(80) [(79)] PM 10 emissions

-- Finely

- divided solid or liquid material with an aerodynamic diameter l ess than or equal to a nominal ten micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or alternative method specified in 40 Code of Federal Regulations Part 51, or by a test method specified in an approve d state implementation plan.

(81) [(80)] Polychlorinated biphenyl compound

-- A compound subject to 40 Code of Federal Regulations Part 761.

(82) [(81)] Process or processes

-- Any action, operation, or treatment embracing chemical, commercial, industrial, or manufacturing factors such as combustion units, kilns, stills, dryers, roasters, and equipment used in connection therewith, and all other methods or forms of manufacturing or processing that may emit smoke, particulate matter, gaseous matter, or visib le emissions.

(83) [(82)] Process weight per hour

-- "Process weight" is the total weight of all materials introduced or recirculated into any specific process that may cause any discharge of air contaminants into the atmosphere. Solid fuels charged into t he process will be considered as part of the process weight, but liquid and gaseous fuels and combustion air will not. The "process weight per hour" will be derived by dividing the total process weight by the number of hours in one complete operation from the beginning of any givenTexa s Commission on Environmental Quality Page 59 Chapter 101

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process to the completion thereof, excluding any time during that the equipment used to conduct the process is idle. For continuous operation, the "process weight per hour" will be derived by dividing the total process weight for a 24

- hour period by 24.

(84) [(83)] Property

-- All land under common control or ownership coupled with all improvements on such land, and all fixed or movable objects on such land, or any vessel on the waters of this state.

(85) [(84)] Reasonable furth er progress

-- Annual incremental reductions in emissions of the applicable air contaminant that are sufficient to provide for attainment of the applicable national ambient air quality standard in the designated nonattainment areas by the date required in th e state implementation plan.

(86) [(85)] Regulated entity

-- All regulated units, facilities, equipment, structures, or sources at one street address or location that are owned or operated by the same person. The term includes any property under common owne rship or control identified in a permit or used in conjunction with the regulated activity at the same street address or location. Owners or operators of pipelines, gathering lines, and flowlines under common ownership or control in a particular county may be treated as a single regulated entity for purposes of assessment and regulation of emissions events.Texa s Commission on Environmental Quality Page 60 Chapter 101

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(87) [(86)] Remote reservoir cold solvent cleaning

-- Any cold solvent cleaning operation in which liquid solvent is pumped to a sink

- like work area tha t drains solvent back into an enclosed container while parts are being cleaned, allowing no solvent to pool in the work area.

(88) [(87)] Reportable emissions event

-- Any emissions event that in any 24

- hour period, results in an unauthorized emission from any emissions point equal to or in excess of the reportable quantity as defined in this section.

(89) [(88)] Reportable quantity (RQ)

-- Is as follows:

(A) for individual air contaminant compounds and specifically listed mixtures by name or Chemical Abs tracts Service (CAS) number, either:

(i) the lowest of the quantities:

(I) listed in 40 Code of Federal Regulations (CFR) Part 302, Table 302.4, the column "final RQ";

(II) listed in 40 CFR Part 355, Appendix A, the column "Reportable Quantity"; orTexa s Commission on Environmental Quality Page 61 Chapter 101

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(III) listed as follows:

(

- a
- ) acetaldehyde

- 1,000 pounds, except in the Houston

- Galveston

- Brazoria (HGB) and Beaumont

- Port Arthur (BPA) ozone nonattainment areas as defined in paragraph (70) of this section, where the RQ must be 100 pounds;

(

- b

- ) bu tanes (any isomer)

- 5,000 pounds;

(

- c
- ) butenes (any isomer, except 1,3

- butadiene)

- 5,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) of this section, where the RQ must be 100 pounds;

(

- d

- ) carbon monoxide

- 5,000 pounds;

(

- e
- ) 1

- chloro

- 1,1

- difluoroethane (HCFC

- 142b)

- 5,000 pounds;

(

- f

- ) chlorodifluoromethane (HCFC

- 22)

- 5,000 pounds;Texa s Commission on Environmental Quality Page 62 Chapter 101

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(

- g

- ) 1

- chloro

- 1

- fluoroethane (HCFC

- 151a)

- 5,000 pounds;

(

- h

- ) chlorofluoromethane (HCFC

- 31)

- 5,000 pounds;

(

- i

- ) chloropentafluoroethane (CFC

- 115)

- 5,000 pounds;

(

- j

- ) 2

- chloro

- 1,1,1,2

- tetrafluoroethane (HCFC

124)

- 5,000 pounds;

(

- k

- ) 1

- chloro

- 1,1,2,2 tetrafluoroethane (HCFC

124a)

- 5,000 pounds;

(

- l

- ) 1,1,1,2,3,4,4,5,5,5

- decafluoropentane (HFC 43

- 10mee)

- 5,000 pounds;

(

- m
- ) decanes (any isomer)

- 5,000 pounds;Texa s Commission on Environmental Quality Page 63 Chapter 101

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(

- n
- ) 1,1

- dichloro

- 1

- fluoroethane (HCFC

- 141b)

- 5,000 pounds;

(

- o
- ) 3,3

- dichloro

- 1,1,2,2

- pentafluoropropane (HCFC

- 225ca)

- 5,000 pou nds;

(

- p
- ) 1,3

- dichloro

- 1,1,2,2,3

- pentafluoropropane (HCFC

- 225cb)

- 5,000 pounds;

(

- q
- ) 1,2

- dichloro

- 1,1,2,2

- tetrafluoroethane ( CFC [CFR]

- 114)

- 5,000 pounds;

(

- r
- ) 1,1

- dichlorotetrafluoroethane (CFC

- 114a)

- 5,000 pounds;

(

- s
- ) 1,2

- dichloro

- 1,1,2

- t rifluoroethane (HCFC

123a)

- 5,000 pounds;

(

- t

- ) 1,1

- difluoroethane (HFC

- 152a)

- 5,000 pounds;Texa s Commission on Environmental Quality Page 64 Chapter 101

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(

- u
- ) difluoromethane (HFC

- 32)

- 5,000 pounds;

(

- v
- ) ethanol

- 5,000 pounds;

(

- w
- ) ethylene

- 5,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) of this section, where the RQ must be 100 pounds;

(

- x
- ) ethylfluoride (HFC

- 161)

- 5,000 pounds;

(

- y
- ) 1,1,1,2,3,3,3

- heptafluoropropane (HFC

227ea)

- 5,000 pounds;

(

- z
- ) 1,1,1,3,3,3

- hexafluoropropane (HFC

- 236fa)

- 5,000 pounds;

(

- aa
- ) 1,1,1,2,3,3

- hexafluoropropane (HFC

- 236ea)

- 5,000 pounds;

(

- bb

- ) hexanes (any isomer)

- 5,000 pounds;Texa s Commission on Environmental Quality Page 65 Chapter 101

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(

- cc
- ) isopropyl alcohol

- 5,000 pounds;

(

- dd

- ) mineral spirits

- 5,000 pou nds;

(

- ee
- ) octanes (any isomer)

- 5,000 pounds;

(

- ff

- ) oxides of nitrogen

- 200 pounds in ozone nonattainment, ozone maintenance, early action compact areas, Nueces County, and San Patricio County, and 5,000 pounds in all other areas of the state, whi ch should be used instead of the RQs for nitrogen oxide and nitrogen dioxide provided in 40 CFR Part 302, Table 302.4, the column "final RQ";

(

- gg

- ) pentachlorofluoroethane ( CFC [CFR]

- 111)

- 5,000 pounds;

(

- hh

- ) 1,1,1,3,3

- pentafluorobutane (HFC

- 365mfc)

- 5,000 pounds;

(

- ii

- ) pentafluoroethane (HFC

- 125)

- 5,000 pounds;Texa s Commission on Environmental Quality Page 66 Chapter 101

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(

- jj

- ) 1,1,2,2,3

- pentafluoropropane (HFC

- 245ca)

- 5,000 pounds;

(

- kk

- ) 1,1,2,3,3

- pentafluoropropane (HFC

- 245ea)

- 5,000 pounds;

(

- ll

- ) 1,1,1,2,3

- pentafluoropropane (HFC

- 245eb)

- 5, 000 pounds;

(

- mm
- ) 1,1,1,3,3

- pentafluoropropane (HFC

- 245fa)

- 5,000 pounds;

(

- nn
- ) pentanes (any isomer)

- 5,000 pounds;

(

- oo
- ) propane

- 5,000 pounds;

(

- pp
- ) propylene

- 5,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) of this section, where the RQ must be 100 pounds;Texa s Commission on Environmental Quality Page 67 Chapter 101

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(

- qq
- ) 1,1,2,2

- terachlorodifluoroethane ( CFC [CFR]

- 112)

- 5,000 pounds;

(

- rr
- ) 1,1,1,2

- tetra chlorodifluoroethane (CFC

- 112a)

- 5,000 pounds;

(

- ss
- ) 1,1,2,2

- tetrafluoroethane (HFC

- 134)

- 5,000 pounds;

(

- tt

- ) 1,1,1,2

- tetrafluoroethane (HFC

- 134a)

- 5,000 pounds;

(

- uu
- ) 1,1,2

- trichloro

- 1,2,2

- trifluoroethane ( CFC [CFR]

- 113)

- 5,000 pounds;

(

- vv
- ) 1,1,1

- trichloro

- 2,2,2

- trilfloroethane (CFC

113a)

- 5,000 pounds;

(

- ww
- ) 1,1,1

- trifluoro

- 2,2

- dichloroethane (HCFC

123)

- 5,000 pounds;Texa s Commission on Environmental Quality Page 68 Chapter 101

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(

- xx
- ) 1,1,1

- trifluoroethane (HFC

- 143a)

- 5,000 pounds;

(

- yy
- ) trifluoromethane (HFC

- 23)

- 5,000 pounds; [or] (

- zz
- ) toluene

- 1,000 pounds, except in the HGB and BPA ozone nonattainment areas as defined in paragraph (70) of this section, where the RQ must be 100 pounds; or

(

- aaa
- ) 3

- Pentanone, 1,1,1,2,2,4,5,5,5

- nonafluoro

4

- (trifluoromethyl)

- , CAS No. 756

- 13

- 8, or C6 fluoroketone

– 5,000 pounds;

(ii) if not listed in clause (i) of this subparagraph, 100 pounds;

(iii) for greenhouse gases , individually or collectively, there is no reportable quantity, except for the specific individual air contaminant compounds listed in this paragraph ;

(B) for mixtures of air contaminant compounds:Texa s Commission on Environmental Quality Page 69 Chapter 101

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(i) where the relative amount of individual air contaminant compounds is known through common process knowledge or prior engineering analysis or testing, any amount of an individua l air contaminant compound that equals or exceeds the amount specified in subparagraph (A) of this paragraph;

(ii) where the relative amount of individual air contaminant compounds in subparagraph (A)(i) of this paragraph is not known, any amount of the mixture that equals or exceeds the amount for any single air contaminant compound that is present in the mixture and listed in subparagraph (A)(i) of this paragraph;

(iii) where each of the individual air contaminant compounds listed in subparagraph (A)( i) of this paragraph are known to be less than 0.02% by weight of the mixture, and each of the other individual air contaminant compounds covered by subparagraph (A)(ii) of this paragraph are known to be less than 2.0% by weight of the mixture, any total a mount of the mixture of air contaminant compounds greater than or equal to 5,000 pounds; or

(iv) where natural gas excluding carbon dioxide, water, nitrogen, methane, ethane, noble gases, hydrogen, and oxygen or air emissions from crude oil are known to be in an amount greater than or equal to 5,000 pounds or the associatedTexa s Commission on Environmental Quality Page 70 Chapter 101

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hydrogen sulfide and mercaptans in a total amount greater than 100 pounds, whichever occurs first;

(C) for opacity from boilers and combustion turbines as defined in this section fue led by natural gas, coal, lignite, wood, fuel oil containing hazardous air pollutants at a concentration of less than 0.02% by weight, opacity that is equal to or exceeds 15 additional percentage points above the applicable limit, averaged over a six

minut e period. Opacity is the only RQ applicable to boilers and combustion turbines described in this paragraph; or

(D) for facilities where air contaminant compounds are measured directly by a continuous emission monitoring system providing updated readings a t a minimum 15

- minute interval an amount, approved by the executive director based on any relevant conditions and a screening model, that would be reported prior to ground level concentrations reaching at any distance beyond the closest regulated entity pr operty line:

(i) less than one

- half of any applicable ambient air standards; and

(ii) less than two times the concentration of applicable air emission limitations.Texa s Commission on Environmental Quality Page 71 Chapter 101

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(90) [ (89)] Rubbish

-- Nonputrescible solid waste, consisting of both combustible and no ncombustible waste materials. Combustible rubbish includes paper, rags, cartons, wood, excelsior, furniture, rubber, plastics, yard trimmings, leaves, and similar materials. Noncombustible rubbish includes glass, crockery, tin cans, aluminum cans, metal fu rniture, and like materials that will not burn at ordinary incinerator temperatures (1,600 degrees Fahrenheit to 1,800 degrees Fahrenheit).

(91) [(90)] Scheduled maintenance, startup, or shutdown activity

-- For activities with unauthorized emissions that are expected to exceed a reportable quantity (RQ), a scheduled maintenance, startup, or shutdown activity is an activity that the owner or operator of the regulated entity whether performing or otherwise affected by the activity, provides prior notice and a final report as required by §101.211 of this title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping Requirements); the notice or final report includes the information required in §101.211 of this title; and the actual unauthorized emissions from the activity do not exceed the emissions estimates submitted in the initial notification by more than an RQ. For activities with unauthorized emissions that are not expected to, and do not, exceed an RQ, a scheduled maintenance , startup, or shutdown activity is one that is recorded as required by §101.211 of this title. Expected excess opacity events as described in §101.201(e) of this title (relating to Emissions Event Reporting and Recordkeeping Requirements) resulting fromTexa s Commission on Environmental Quality Page 72 Chapter 101

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sc heduled maintenance, startup, or shutdown activities are those that provide prior notice (if required), and are recorded and reported as required by §101.211 of this title.

(92) [(91)] Sludge

-- Any solid or semi

- solid, or liquid waste generated from a

mun icipal, commercial, or industrial wastewater treatment plant; water supply treatment plant, exclusive of the treated effluent from a wastewater treatment plant; or air pollution control equipment.

(93) [(92)] Smoke

-- Small gas

- born particles resulting from incomplete combustion consisting predominately of carbon and other combustible material and present in sufficient quantity to be visible.

(94) [(93)] Solid waste

-- Garbage, rubbish, refuse, sludge from a waste water treatment plant, water supply treatment plant, or air pollution control equipment, and other discarded material, including solid, liquid, semisolid, or containerized gaseous material resulting from industrial, municipal, commercial, mining, and agricultural operations and from community and institutional activities. The term does not include:

(A) solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to reg ulation by permit issued under the Texas Water Code, Chapter 26;Texa s Commission on Environmental Quality Page 73 Chapter 101

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(B) soil, dirt, rock, sand, and other natural or man

- made inert solid materials used to fill land, if the object of the fill is to make the land suitable for the construction of surface imp rovements; or

(C) waste materials that result from activities associated with the exploration, development, or production of oil or gas, or geothermal resources, and other substance or material regulated by the Railroad Commission of Texas under Natural Resources Code, §91.101, unless the waste, substance, or material results from activities associated with gasoline plants, natural gas liquids processing plants, pressure maintenance plants, or repressurizing plants and is hazardous waste as defined by the administrator of the United States Environmental Protection Agency under the federal Solid Waste Disposal Act, as amended by Resource Conservation and Recovery Act, as amended (42 United States Code, §§6901 et seq .).

(95) [(94)] Sour crude

-- A crude oil that will emit a sour gas when in equilibrium at atmospheric pressure.

(96) [(95)] Sour gas

-- Any natural gas containing more than 1.5 grains of hydrogen sulfide per 100 cubic feet, or more than 30 grains of total sulfur per 100 cubic feet.Texa s Commission on Environmental Quality Page 74 Chapter 101

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(97) [(96)] Source

-- A point of origin of air contaminants, whether privately or publicly owned or operated. Upon request of a source owner, the executive director shall determine whether multiple processes emitting air contaminants from a single point of emission will be treated as a single source or as multiple sources.

(98) [(97)] Special waste from health care

- related facilities

-- A solid waste that if improperly treated or handled, may serve to transmit infectious disease(s) and that is comprised of the following: animal waste, bulk blood and blood products, microbiological waste, pathological waste, and sharps.

(99) [(98)] Standard conditions

-- A condition at a temperature of 68 degrees Fahrenheit (20 degrees Centigrade) and a pressure of 14.7 pounds per square in ch absolute (101.3 kiloPascals).

(100) [(99)] Standard metropolitan statistical area

-- An area consisting of a county or one or more contiguous counties that is officially so designated by the United States Bureau of the Budget.

(101) [(100)] Submerged fill pipe

-- A fill pipe that extends from the top of a tank to have a maximum clearance of six inches (15.2 centimeters) from the bottom or,Texa s Commission on Environmental Quality Page 75 Chapter 101

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when applied to a tank that is loaded from the side, that has a discharge opening entirely submerged when the pipe u sed to withdraw liquid from the tank can no longer withdraw liquid in normal operation.

(102) [(101)] Sulfur compounds

-- All inorganic or organic chemicals having an atom or atoms of sulfur in their chemical structure.

(103) [(102)] Sulfuric acid mist/s ulfuric acid

-- Emissions of sulfuric acid mist and sulfuric acid are considered to be the same air contaminant calculated as H2 SO4 and must include sulfuric acid liquid mist, sulfur trioxide, and sulfuric acid vapor as measured by Test Method 8 in 40 Code of Federal Regulations Part 60, Appendix A.

(104) [(103)] Sweet crude oil and gas

-- Those crude petroleum hydrocarbons that are not "sour" as defined in this section.

(105) [(104)] Total suspended particulate

-- Particulate matter as measured by the method described in 40 Code of Federal Regulations Part 50, Appendix B.

(106) [(105)] Transfer efficiency

-- The amount of coating solids deposited onto the surface or a part of product divided by the total amount of coating soli ds delivered to the coating application system.Texa s Commission on Environmental Quality Page 76 Chapter 101

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(107) [(106)] True vapor pressure

-- The absolute aggregate partial vapor pressure, measured in pounds per square inch absolute, of all volatile organic compounds at the temperature of storage, handling, or p rocessing.

(108) [(107)] Unauthorized emissions

-- Emissions of any air contaminant except [carbon dioxide,] water, nitrogen, [methane,] ethane, noble gases, hydrogen, and oxygen that exceed any air emission limitation in a permit, rule, or order of the

co mmission or as authorized by Texas Clean Air Act, §382.0518(g).

(109) [(108)] Unplanned maintenance, startup, or shutdown activity

-- For activities with unauthorized emissions that are expected to exceed a reportable quantity or with excess opacity, an un planned maintenance, startup, or shutdown activity is:

(A) a startup or shutdown that was not part of normal or routine facility operations, is unpredictable as to timing, and is not the type of event normally authorized by permit; or

(B) a maintenance activity that arises from sudden and unforeseeable events beyond the control of the operator that requires the immediate corrective action to minimize or avoid an upset or malfunction.Texa s Commission on Environmental Quality Page 77 Chapter 101

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(110) [(109)] Upset event

-- An unplanned and unavoidable breakdown or excursion of a process or operation that results in unauthorized emissions. A maintenance, startup, or shutdown activity that was reported under §101.211 of this title (relating to Scheduled Maintenance, Startup, and Shutdown Reporting and Recordkeeping R equirements), but had emissions that exceeded the reported amount by more than a reportable quantity due to an unplanned and unavoidable breakdown or excursion of a process or operation is an upset event.

(111) [(110)] Utility boiler

-- A boiler used to pr oduce electric power, steam, or heated or cooled air, or other gases or fluids for sale.

(112) [(111)] Vapor combustor

-- A partially enclosed combustion device used to destroy volatile organic compounds by smokeless combustion without extracting energy
in the form of process heat or steam. The combustion flame may be partially visible, but at no time does the device operate with an uncontrolled flame. Auxiliary fuel and/or a flame air control damping system that can operate at all times to control the air/ fuel mixture to the combustor's flame zone, may be required to ensure smokeless combustion during operation.Texa s Commission on Environmental Quality Page 78 Chapter 101

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(113) [(112)] Vapor

- mounted seal

-- A primary seal mounted so there is an annular space underneath the seal. The annular vapor space is bounded by the bottom of the primary seal, the tank wall, the liquid surface, and the floating roof or cover.

(114) [(113)] Vent

-- Any duct, stack, chimney, flue, conduit, or other device used to conduct air contaminants into the atmosphere.

(115) [(114)] Visible emissions

-- Particulate or gaseous matter that can be detected by the human eye. The radiant energy from an open flame is not considered a visible emission under this definition.

(116) [(115)] Volatile organic compound

-- As defined in 40 Code of Federal Regulations §51.100(s), except §51.100(s)(2)

- (4), as amended on January 21, 2009 (74 FR 3441).

(117) [(116)] Volatile organic compound (VOC) water separator

-- Any tank, box, sump, or ot her container in which any VOC, floating on or contained in water entering such tank, box, sump, or other container, is physically separated and removed from such water prior to outfall, drainage, or recovery of such water.Texa s Commission on Environmental Quality Page 79 Chapter 101

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§101.10. Emissions Inventory Re quirements.

(a) Applicability. The owner or operator of an account or source in the State of Texas or on waters that extend 25 miles from the shoreline meeting one or more of the following conditions shall submit emissions inventories [and/]or related dat a as required in subsection (b) of this section to the commission on forms or other media approved by the
commission:

(1) an account which meets the definition of a major facility/stationary source, as defined in §116.12 of this title (relating to Nonatt ainment and Prevention of Significant Deterioration Review Definitions) ;

(2) [ or ] any account in an ozone nonattainment area emitting a minimum of ten tons per year (tpy) volatile organic compounds (VOC), 25 tpy nitrogen oxides (NO X

), or 100 tpy or more o f any other contaminant subject to national ambient air quality standards (NAAQS);

(3) [ (2) ] any account that emits or has the potential to emit 100 tpy or more of any contaminant except for GHGs , individually or collectively, as listed in §101.1 of this chapter (relating to Definitions) ;Texa s Commission on Environmental Quality Page 80 Chapter 101

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(4) [ (3) ] any account which emits or has the potential to emit 10 tons of any single or 25 tons of aggregate hazardous air pollutants as defined in Federal Clean Air Act ( FCAA ) , §112(a)(1); and

(5) [ (4) ] any minor industrial source, area source, non

- road mobile source, or mobile source of emissions subject to special inventories under subsection (b)(3) of this section. For purposes of this section, the term "area source" means a group of similar
activitie s that, taken collectively, produce a significant amount of air pollution.

(b) Types of inventories.

(1) Initial emissions inventory. Accounts, as identified in subsection (a)(1), (2), [ or ] (3) , or (4) of this section, shall submit an initial emissions inventory (IEI) for any criteria pollutant or hazardous air pollutant (HAP) that has not been identified in a previous inventory. The IEI shall consist of actual emissions of VOC, NO X , carbon monoxide (CO), sulfur dioxide (SO 2 ), lead (Pb), particulate mat ter of less than 10 microns in diameter (PM 10 ), any other contaminant subject to NAAQS, emissions of all HAPs identified in FCAA , §112(b), or any other contaminant requested by the commission from individual emission units within an account. For purposes o f this section, the term "actual emission" is the actual rate of emissions of a pollutant from an emissions unit as it enters the atmosphere. The reporting year will be the calendar year or seasonal period asTexa s Commission on Environmental Quality Page 81 Chapter 101

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designated by the commission. Reported emission activities must include annual routine emissions; excess emissions occurring during maintenance activities, including start

- ups and shutdowns; and emissions resulting from upset conditions. For the ozone nonattainment areas, the inventory shall also inclu de typical weekday emissions that occur during the summer months. For CO nonattainment areas, the inventory shall also include typical weekday emissions that occur during the winter months. Emission calculations must follow methodologies as identified in s ubsection (c) of this section.

(2) Statewide annual emissions inventory update (AEIU). Accounts meeting the applicability requirements during an inventory reporting period as identified in subsection (a)(1), (2), [ or ] (3) , or (4) of this section shall su bmit an AEIU which consists of actual emissions as identified in subsection (b)(1) of this section if any of the following criteria are met. If none of the following criteria are met, a letter certifying such shall be submitted instead:

(A) any change in operating conditions, including start

- ups, permanent shut

- downs of individual units, or process changes at the account, that results in at least a 5.0% or 5 tpy, whichever is greater, increase or reduction in total annual emissions of VOC, NO X , CO, SO 2 , P b, or PM 10 from the most recently submitted emissions data of the account; orTexa s Commission on Environmental Quality Page 82 Chapter 101

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(B) a cessation of all production processes and termination of operations at the account.

(3) Special inventories. Upon request by the executive director or a designated representative of the commission, any person owning or operating a source of air emissions which is or could be affected by any rule or regulation of the commission shall file emissions

- related data with the commission as necessary to develop an inventory of emissions. Owners or operators submitting the requested data may make special procedural arrangements with the [Industrial] Emissions Assessment Section to submit data separ ate from routine emission inventory submissions or other arrangements as necessary to support claims of confidentiality.

(c) Calculations. Actual measurement with continuous emissions monitoring systems (CEMS) is the preferred method of calculating emiss ions from a source. If CEMS data is not available, other means for determining actual emissions may be utilized in accordance with detailed instructions of the commission. Sample calculations representative of the processes in the account must be submitted with the inventory.

(d) Certifying statement. A certifying statement, required by the FCAA, §182(a)(3)(B), is to be signed by the owner(s) or operator(s) and shall accompany eachTexa s Commission on Environmental Quality Page 83 Chapter 101

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emissions inventory to attest that the information contained in the invent ory is true and accurate to the best knowledge of the certifying official.

(e) Reporting requirements. The IEI or subsequent AEIUs shall contain emissions data from the previous calendar year and shall be due on March 31 of each year or as directed by th e commission. Owners or operators submitting emissions data may make special procedural arrangements with the [Industrial] Emissions Assessment Section to submit data separate from routine emission inventory submissions or other arrangements as necessary t o support claims of confidentiality. Emissions

- related data submitted under a special inventory request made under subsection (b)(3) of this section are due as detailed in the letter of request.

(f) Enforcement. Failure to submit emissions inventory data as required in this section shall result in formal enforcement action under Texas Water Code, Chapter 7 [the]. [TCAA, §382.082 and §382.088. In addition, the TCAA, §361.2225, provides for criminal penalties for failure to comply with this section.]

§101. 27. Emissions Fees.

(a) Applicability. The owner or operator of an account that is required to obtain a federal operating permit as described in Chapter 122 of this title (relating to FederalTexa s Commission on Environmental Quality Page 84 Chapter 101

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Operating Permits Program) shall remit to the commission an emi ssions fee each fiscal
year. A fiscal year is defined as the period from September 1 through August 31. A fiscal year, having the same number as the next calendar year, begins on the September 1 prior to that calendar year. Each account will be assessed a separate emissions fee. An account subject to both an emissions fee and an inspection fee, under §101.24 of this title (relating to Inspection Fees), is required to pay only the greater of the two fees. The commission will not initiate the combination or s eparation of accounts solely for fee assessment purposes. If an account is operated at any time during the fiscal year that a fee is being assessed, a full emissions fee is due. If the commission is notified in writing that the account is not and will not be in operation during that fiscal year, a fee will not be due.

(b) Self reported/billed information. Emissions/inspection fees information packets will be mailed to each account owner or operator prior to the fiscal year that a fee is due. The completed emissions/inspection fees basis form must be returned to the address specified on the emissions/inspection fees basis form within 60 calendar days of the date the agency sends the emissions fees information packet. The completed emissions/inspection fees basis form must include, at least, the company name, mailing address, site name, all commission identification numbers, applicable Standard Industrial Classification (SIC) category, the emissions of all regulated air pollutants at the account for the repor ting period, and the name and telephone number of the person to contact in case questions arise regarding the fee payment. If more than one SIC category can apply to anTexa s Commission on Environmental Quality Page 85 Chapter 101

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account, the category reported must be the one with the highest associated fee as liste d in §101.24 of this title. Subsequent to a review of the information submitted, a billing statement of the fee assessment will be sent to the account owner or operator.

(c) Requesting fee information packet. If an account owner or operator has not
recei ved the fee information packet described in subsection (b) of this section by June 1 prior to the fiscal year that a fee is due, the owner or operator of the account shall notify the commission by July 1 prior to the fiscal year that a fee is due. For acco unts that begin or resume operation after September 1, the owner or operator of the account shall request an information packet within 30 calendar days prior to commencing operation.

(d) Payment. Fees must be remitted by check, certified check, electroni c funds transfer, or money order and sent to the address printed on the billing statement.

(e) Due date. Payment of the emissions fee is due within 30 calendar days of the date the agency sends a statement of the assessment to the account owner or operat or.

(f) Basis for fees.

(1) The fee must be based on allowable levels or actual emissions at the account. For purposes of this section, allowable levels are those limits as specified in anTexa s Commission on Environmental Quality Page 86 Chapter 101

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enforceable document such as a permit, certified registration of emissions, or Commission Order that are in effect during the fiscal year that a fee is due and actual emissions are the emissions of all regulated pollutants emitted from the account during the last full calendar year preceding the beginning of the fisc al year that a fee is due. Under no circumstances may the fee basis be less than the actual emissions at the account. The fee applies to the regulated pollutant emissions at the account, including those emissions from point and fugitive sources. The fee ba sis must include emissions during all operational conditions, including all emissions from emissions events and maintenance, startup, and shutdown activities as described in Subchapter F of this chapter (relating to Emissions Events and Scheduled Maintenan ce, Startup, and Shutdown Activities). Although certain fugitive emissions are excluded for applicability determination purposes under subsection (a) of this section, all fugitive emissions must be considered for fee calculations after applicability of the fee has been established. A maximum of 4,000 tons of each regulated pollutant will be used for fee calculations. The fee for each fiscal year is set at the following rates.

Figure: 30 TAC §101.27(f)(1 )(No change to the figure as it currently exists in TA C)

(2) The emissions tonnage for the account for fee calculation purposes will be the sum of those allowable levels or actual emissions for individual emission points or process units at the account rounded up to the nearest whole number, as follows.Texa s Commission on Environmental Quality Page 87 Chapter 101

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(A ) Where there is an enforceable document such as a permit, certified registration of emissions, or a Commission Order establishing allowable levels for individual emission points or process units, the actual emissions from all individual emission points an d process units at the account may be used to calculate the fee basis only if a complete and verifiable emissions [ emission ] inventory for the account is submitted as described in §101.10 of this title (relating to Emissions Inventory Requirements). Where a complete and verifiable emissions inventory is not submitted, the executive director may direct that the fee be based on all of the allowable levels for the account.

(B) Where there is not an enforceable document such as a permit, certified registratio n of emissions, or a Commission Order establishing allowable levels for individual emissions points or process units; actual emissions from all individual emission points and process units must be used to calculate the fee basis. Actual production, through put, or measurement records must be submitted along with complete documentation of calculation methods. Thorough justification is required for all assumptions made and emission factors used in such calculations.

(3) For purposes of this section, the term "regulated pollutant" includes any volatile organic compound, any pollutant subject to Federal Clean Air Act (FCAA), §111, any pollutant listed as a hazardous air pollutant under FCAA, §112, each pollutant that a national primary ambient air quality stand ard has been promulgated (including carbonTexa s Commission on Environmental Quality Page 88 Chapter 101

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monoxide), and any other air pollutant subject to requirements under commission rules, regulations, permits, orders of the commission, or court orders. For purposes of this section, the term "regulated pollutant" does not include individual gases listed in the definition of greenhouse gases

.
(g) Nonpayment of fees. Each emissions fee payment must be paid at the time and in the manner and amount provided by this subchapter. Failure to remit the full emissions fee by the due date must result in enforcement action under Texas Water Code, §7.178. The provisions of this section, as first adopted and amended thereafter, are and must remain in effect for purposes of any unpaid fee assessments, and the fees assessed in accordance with such provisions as adopted or as amended remain a continuing obligat ion.

(h) Late payments. The agency shall impose interest and penalties on owners or operators of accounts who fail to make payment of emissions fees when due in accordance with Chapter 12 of this title (relating to Payment of Fees).Texa s Commission on Environmental Quality Page 89 Chapter 101

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SUBCHAPTER F: EMI SSIONS EVENTS AND SCHEDULED MAINTENANCE, STARTUP, AND SHUTDOWN ACTIVITIES DIVISION 1: EMISSIONS EVENTS §101.201

Statutory Authority The amendment is proposed under Texas Water Code (TWC), §5.102, concerning General Powers, which provides the commission with the general powers to carry out its duties under the TWC; TWC, §5.103, concerning Rules, and TWC, §5.105, concerning General Policy, which authorize the commission to adopt rules necessa ry to carry out its powers and duties under the TWC; and under Texas Health and Safety Code (THSC), §382.017, concerning Rules, which authorizes the commission to adopt rules consistent with the policy and purposes of the Texas Clean Air Act. The amendment is also proposed under THSC, §382.002, concerning Policy and Purpose, which establishes the commission's purpose to safeguard the state's air resources, consistent with the protection of public health, general welfare, and physical property; THSC, §382.01 1, concerning General Powers and Duties, which authorizes the commission to control the quality of the state's air; THSC, §382.012, concerning State Air Control Plan, which authorizes the commission to prepare and develop a general, comprehensive plan for the control of the state's air; THSC, §382.014, concerning Emission Inventory, which authorizes the commission toTexa s Commission on Environmental Quality Page 90 Chapter 101

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require submittal of information regarding emissions of air contaminants; THSC, §382.016, concerning Monitoring Requirements; Examination of R ecords, which authorizes the commission to prescribe requirements for measuring, monitoring, and maintaining records of emissions of air contaminants; THSC, §382.0215, concerning Assessment of Emissions Due to Emissions Events, which authorizes the commiss ion to collect and assess unauthorized emissions data due to emissions events; THSC, §382.0216, concerning Regulation of Emissions Events, which authorizes the commission to establish criteria for determining when emissions events are excessive and to requ ire facilities to take action to reduce emissions from excessive emissions events; THSC, §382.05102, concerning Permitting Authority of Commission; Greenhouse Gas Emissions, which relates to the permitting authority of the commission for greenhouse gas emi ssions; THSC, § 382.062, concerning Application, Permit and Inspection Fees, which authorizes the commission to charge these types of fees; and THSC, §382.085, concerning Unauthorized Emissions Prohibited, which prohibits emissions of air contaminants excep t as authorized by commission by rule or order. The amendment is also proposed under Texas Government Code, §2006.004, concerning Requirements to Adopt Rules of Practice and Index Rules, Orders, Decisions, which requires state agencies to adopt procedural rules; and Texas Government Code, §2001.006, concerning Actions Prepatory to Implementation of Statute or Rule, which authorizes state agencies to adopt rules or take other administrative action that the agency deems necessary to implement legislation. Add itionally, the amendment is proposed under Federal Clean Air Act (FCAA), 42 UnitedTexa s Commission on Environmental Quality Page 91 Chapter 101

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States Code (USC), §§7401, et seq ., which requires states to submit state implementation plan revisions that specify the manner in which the national ambient air quality sta ndards will be achieved and maintained within each air quality control region of the state.

The proposed amendment implements House Bill 788 (82nd Legislature, 2013), THSC, §§382.002, 382.011, 382.012, 382.014, 382.016, 382.0215, 382.0216, 382.05102, and 382.062; and Texas Government Code, §2001.004 and §2001.006; and FCAA, 42 USC, §§7401 et seq

.

§101.201. Emissions Event Reporting and Recordkeeping Requirements.

(a) The following requirements for reportable emissions events apply.

(1) As soon as practicable, but not later than 24 hours after the discovery of an emissions event, the owner or operator of a regulated entity shall:

(A) determine if the event is a reportable emissions event; and

(B) notify the commission office for t he region in which the regulated entity is located, and all appropriate local air pollution control agencies with jurisdiction, if the emissions event is reportable.Texa s Commission on Environmental Quality Page 92 Chapter 101

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(2) The initial 24

- hour notification for reportable emissions events, with the exception of emissions from boilers or combustion turbines referenced in the definition of reportable quantity (RQ) in §101.1 of this title (relating to Definitions) for each regulated entity, must at a minimum, identify for each emissions point with emissions that exceed an RQ:

(A) the name of the owner or operator of the regulated entity experiencing an emissions event;

(B) the commission Regulated Entity Number of the regulated entity experiencing an emissions event, if a Regulated Entity Number exists, or if there is not a Regulated Entity Number, the air account number of the regulated entity. If a Regulated Entity Number and air account number do not exist, then identify the location of the release and a contact telephone number;

(C) the common name of the process units or areas, the common name of the facilities that incurred the emissions event, and the common name of the emission points where the unauthorized emissions exceeded an RQ were released to the atmosphere;Texa s Commission on Environmental Quality Page 93 Chapter 101

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(D) the da te and time of the discovery of the emissions;

(E) the estimated duration of the emissions;

(F) the compound descriptive type of the individually listed compounds or mixtures of air contaminants released during the emissions event, in the definition of RQ in §101.1 of this title that are known through common process knowledge, past engineering analysis, or testing to have equaled or exceeded the RQ;

(G) the estimated total quantities for those compounds or mixtures described in subparagraph (F) of thi s paragraph;

(H) the best known cause of the emissions event at the time of the initial 24

- hour notification, if known; and

(I) the actions taken, or being taken, to correct the emissions event and minimize the emissions.

(3) The initial 24

- hour noti fication for reportable emissions events for boilers or combustion turbines referenced in the definition of RQ in §101.1 of this title must identify for each emission point with excess opacity that exceeds the RQ by more than 15%:Texa s Commission on Environmental Quality Page 94 Chapter 101

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(A) the name of the own er or operator of the regulated entity experiencing an emissions event;

(B) the commission Regulated Entity Number of the regulated entity experiencing an emissions event, if a Regulated Entity Number exists, or if there is not a Regulated Entity Number, the air account number of the regulated entity. If a Regulated Entity Number and air account number do not exist, then identify the location of the release and a contact telephone number;

(C) the best known cause of the emissions event, if known at the time of notification;

(D) the common name of the process units or areas, the common name of the facilities that experienced the emissions event, and the common name of the emission points where the unauthorized opacity that exceeded the RQ occurred;

(E ) the date and time of the discovery of the emissions event;

(F) the estimated duration or expected duration of the emissions;Texa s Commission on Environmental Quality Page 95 Chapter 101

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(G) the estimated opacity; and

(H) the actions taken, or being taken, to correct the emissions event and minimize the emissions.

(4) The owner or operator of a regulated entity experiencing a reportable emissions event that also requires an initial notification under §327.3 of this ti tle (relating to Notification Requirements) may satisfy the initial 24

- hour notification requirements of this section by complying with the requirements under §327.3 of this title.

(b) The owner or operator of a regulated entity experiencing an emissions event shall create a final record of all reportable and non

- reportable emissions events as soon as practicable, but no later than two weeks after the end of an emissions event. Final records must be maintained on

- site for a minimum of five years and be ma de readily available upon request to commission staff or personnel of any air pollution program with jurisdiction. If a regulated entity is not normally staffed, records of emissions events may be maintained at the staffed location within Texas that is res ponsible for the day

- to

- day operations of the regulated entity.

(1) The final record of a reportable emissions event must identify for all emission points involved in the emissions event:Texa s Commission on Environmental Quality Page 96 Chapter 101

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(A) the name of the owner or operator of the regulated entity

ex periencing an emissions event;

(B) the commission Regulated Entity Number of the regulated entity experiencing an emissions event, if a Regulated Entity Number and air account number exists, or if there is not a Regulated Entity Number, the air account n umber of the regulated entity. If a Regulated Entity Number and air account number do not exist, then identify the location of the release and a contact telephone number;

(C) the physical location of the points at which emissions to the atmosphere occurr ed;

(D) the common name of the process units or areas, the common name and the agency

- established facility identification number of the facilities that experienced the emissions event, and the common name and the agency

- established emission point numbers where the unauthorized emissions were released to the atmosphere. Owners or operators of those facilities and emission points that the agency has not established facility identification numbers or emission point numbers for are not required to provide the facility identification numbers and emission point numbers in the report, but are required to provide the common names in the report.Texa s Commission on Environmental Quality Page 97 Chapter 101

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(E) the date and time of the discovery of the emissions event;

(F) the estimated duration of the emissions;

(G) the compound descriptive type of all individually listed compounds or mixtures of air contaminants in the definition of RQ in §101.1 of this title, from all emission points involved in the emissions event, that are known through common process knowledge or pa st engineering analysis or testing to have been released during the emissions event, except for boilers or combustion turbines referenced in the definition of RQ in §101.1 of this title. Compounds or mixtures of air contaminants, that have an RQ greater th an or equal to 100 pounds and the amount released is less than ten pounds in a 24

- hour period, are not required to be specifically listed in the report, instead these compounds or mixtures of air contaminants may be identified together as "other";

(H) th e estimated total quantities for those compounds or mixtures described in subparagraph (G) of this paragraph; the preconstruction authorization number or rule citation of the standard permit, permit by rule, or rule, if any, governing the facilities involv ed in the emissions event; and the authorized emissions limits, if any, for the facilities involved in the emissions events, except for boilers or combustion turbines referenced in the definition of RQ in §101.1 of this title, which record only the authori zedTexa s Commission on Environmental Quality Page 98 Chapter 101

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opacity limit and the estimated opacity during the emissions event. Good engineering practice and methods must be used to provide reasonably accurate representations for emissions and opacity. Estimated emissions from compounds or mixtures of air
conta minants that are identified as "other" under subparagraph (G) of this paragraph, are not required for each individual compound or mixture of air contaminants, however, a total estimate of emissions must be provided for the category identified as "other";

(I) the basis used for determining the quantity of air contaminants emitted, except for boilers or combustion turbines referenced in the definition of RQ in §101.1 of this title;

(J) the best known cause of the emissions event at the time of reporting;

(K) the actions taken, or being taken, to correct the emissions event and minimize the emissions; and

(L) any additional information necessary to evaluate the emissions
event.

(2) Records of non

- reportable emissions events must identify:Texa s Commission on Environmental Quality Page 99 Chapter 101

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(A) the na me of the owner or operator of the regulated entity experiencing an emissions event;

(B) the commission Regulated Entity Number and air account number of the regulated entity experiencing an emissions event, if a Regulated Entity Number and
air account n umber exists, of if there is not a Regulated Entity Number, the air account number of the regulated entity. If a Regulated Entity Number and air account number do not exist, then identify the location of the release and a contact telephone number;

(C) th e physical location of the points at which emissions to the atmosphere occurred;

(D) the common name of the process units or areas, the common name and the agency

- established facility identification number of the facilities that experienced the emissions event, and the common name and the agency

- established emission point numbers where the unauthorized emissions were released to the atmosphere. Owners or operators of those facilities and emission points that the commission has not established facility ide ntification numbers or emission point numbers for are not required to provide the facility identification numbers and emission point numbers in the report, but are required to provide the common names in the report;Texa s Commission on Environmental Quality Page 100 Chapter 101

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(E) the date and time of the discovery of the emissions event;

(F) the estimated duration of the emissions;

(G) the compound descriptive type of the individually listed compounds or mixtures of air contaminants, in the definition of RQ in §101.1 of this title, from all emission points invo lved in the emissions event, that are known through common process knowledge or past engineering analysis, except for boilers or combustion turbines referenced in the definition of RQ in §101.1 of this title and that were unauthorized. Compounds or mixture s of air contaminants, that have an RQ greater than or equal to 100 pounds and the amount released is less than ten pounds in a 24

- hour period, are not required to be specifically listed in the report, instead these compounds or mixtures of air
contaminant s may be identified together as "other";

(H) the estimated total quantities and the authorized emissions limits for those compounds or mixtures described in subparagraph (G) of this paragraph; the preconstruction authorization number or rule citation of the standard permit, permit by rule, or rule, if any, governing the facilities involved in the emissions event; and the authorized emissions limits, if any, for the facilities involved in the emissions events, except for boilers or combustion turbines refe renced in the definition of RQ in §101.1 ofTexa s Commission on Environmental Quality Page 101 Chapter 101

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this title, which record only the authorized opacity limit and the estimated opacity during the emissions event. Good engineering practice and methods must be used to provide reasonably accurate representations f or emissions and opacity. Estimated emissions from compounds or mixtures of air contaminants that are identified as "other" under subparagraph (G) of this paragraph, are not required for each individual compound or mixture of air contaminants, however, a t otal estimate of emissions must be provided for the category identified as "other";

(I) the basis used for determining the quantity of air contaminants emitted, except for boilers or combustion turbines referenced in the definition of RQ in §101.1 of thi s title;

(J) the best known cause of the emissions event at the time of recording;

(K) the actions taken, or being taken, to correct the emissions event and minimize the emissions; and

(L) any additional information necessary to evaluate the emissions
event.Texa s Commission on Environmental Quality Page 102 Chapter 101

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(c) For all reportable emissions events, if the information required in subsection (b) of this section differs from the information provided in the initial 24

- hour notification und er subsection (a) of this section, the owner or operator of the regulated entity shall submit a copy of the final record to the commission office for the region in which the regulated entity is located and to appropriate local air pollution agencies with j urisdiction no later than two weeks after the end of the emissions event. If the owner or operator does not submit a record under this subsection, the information provided in the initial 24

- hour notification under subsection (a) of this section will be the final record of the emissions event, provided the initial 24

- hour notification was submitted electronically in accordance with subsection (g) of this section. Any emissions of greenhouse gases , individually or collectively, are not required to be submitte d under this subsection, except for specific individual air contaminant compounds listed in the definition of reportable quantity.

(d) The owner or operator of a boiler or combustion turbine, as defined in §101.1 of this title, fueled by natural gas, coa l, lignite, wood, or fuel oil containing hazardous air pollutants at a concentration of less than 0.02% by weight, that is equipped with a continuous emission monitoring system that completes a minimum of one operating cycle (sampling, analyzing, and data recording) for each successive 15

- minute interval, and is required to submit excess emission reports by other state or federal requirements, is exempt from creating, maintaining, and submitting final records of reportable and non

reportable emissions event s of the boiler or combustion turbine under subsections (b) andTexa s Commission on Environmental Quality Page 103 Chapter 101

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(c) of this section if the notice submitted under subsection (a) of this section contains the information required under subsection (b) of this section.

(e) As soon as practicable, but not l ater than 24 hours after the discovery of an excess opacity event, as defined in §101.1 of this title, where the owner or operator was not already required to provide an initial 24

- hour notification under subsection (a)(2) or (3) of this section, the owner or operator shall notify the commission office for the region in which the regulated entity is located, and all appropriate local air pollution control agencies with jurisdiction. In the notification, the owner or operator shall identify:

(1) the name o f the owner or operator of the regulated entity experiencing the excess opacity event;

(2) the commission Regulated Entity Number and air account number of the regulated entity experiencing an opacity event, if a Regulated Entity Number and air
account n umber exists, or if there is not a Regulated Entity Number, the air account number of the regulated entity. If a Regulated Entity Number and air account number do not exist, then identify the location of the release and a contact telephone number;

(3) th e physical location of the excess opacity event;Texa s Commission on Environmental Quality Page 104 Chapter 101

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(4) the common name of the process units or areas, the common name of the facilities where the excess opacity event occurred, and the common name of the emission points where the excess opacity event occur red;

(5) the date and time of the discovery of the excess opacity event;

(6) the estimated duration of the excess opacity;

(7) the estimated opacity;

(8) the authorized opacity limit for the facilities having the excess opacity event;

(9) the bes t known cause of the excess opacity event at the time of the notification; and

(10) the actions taken, or being taken, to correct the excess opacity event.

(f) The owner or operator of any regulated entity subject to the provisions of this section shall perform, upon request by the executive director or any air pollution control agency with jurisdiction, a technical evaluation of each emissions event. The eva luationTexa s Commission on Environmental Quality Page 105 Chapter 101

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must include at least an analysis of the probable causes of each emissions event and any necessary actions to prevent or minimize recurrence. The evaluation must be submitted in writing to the executive director and to the appropriate local air pol lution agencies with jurisdiction within 60 days from the date of request. The 60

- day period may be extended by the executive director. Additionally, the owner or operator of a regulated entity experiencing an emissions event must provide, in writing, addi tional or more detailed information regarding the emissions event when requested by the executive director or any air pollution control agency with jurisdiction, within the time established in the request.

(g) On and after January 1, 2003, notifications and reports required in subsection (c) of this section must be submitted electronically to the commission using the electronic forms provided by the commission. On and after January 1, 2004, notifications required in subsections (a) and (e) of this section must be submitted via commission's secure Web server, facsimile, or electronic mail to the commission using electronic forms provided by the commission. Notwithstanding the requirement to report initial 24

- hour notifications electronically after January 1 , 2004, the owner or operator of a regulated entity experiencing a reportable emissions event that also requires an initial notification under §327.3 of this title, is not required to report the event electronically under this subsection provided the owner or operator complies with the requirements under §327.3 of this title and in subsections (a) and (c) of this section. If the initial notification is not submitted by using an online form on the commission's secure Web server, the owner or operator mustTexa s Commission on Environmental Quality Page 106 Chapter 101

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su bmit the identical information on the commission's secure Web server within 48 hours of discovery of the event. In the event the commission's server is unavailable due to technical failures or scheduled maintenance, events may be reported via facsimile to the appropriate regional office. The commission will provide an alternative means of notification in the event that the commission's electronic reporting system is inoperative. Electronic notification and reporting is not required for small businesses that meet the small business definition in Texas Water Code, §5.135(g)(2) and to appropriate local air pollution control agencies with jurisdiction. Small businesses shall provide notifications and reporting by any viable means that meet the time frames requir ed by this section.

(h) Annual emissions event reporting: beginning in calender year 2007, on or before March 31 of each calendar year or as directed by the executive director, each owner or operator of a regulated entity, as defined in §101.1 of this ti tle that is subject to reporting under §101.10 of this title (relating to Emissions Inventory Requirements), and those that are not subject to reporting under §101.10 of this title, but are located in nonattainment, maintenance, early action compact areas, Nueces County, and San Patricio County, that experienced at least one emissions event during the calendar year shall report to the executive director, and all appropriate local air pollution control agencies with jurisdiction, the following:Texa s Commission on Environmental Quality Page 107 Chapter 101

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(1) the tot al number of reportable and the total number of non

- reportable emissions events experienced at the regulated entity;

(2) the estimated total quantities for all compounds or mixtures of air contaminants, by compound or mixture, in the definition of RQ in §101.1 of this title that, by facility, were emitted during emissions events at the regulated entity. Compounds or mixtures of air contaminants, that have an RQ greater than or equal to 100 pounds and the amount released is less than one pound in a 24

- hour period, are not required to be included in the report. Good engineering practice and methods must be used to provide reasonably accurate representations for emissions and opacity. This paragraph does not apply to boilers and combustion turbines referenced in the definition of RQ in §101.1 of this title that must report only the estimated opacities during emissions events and duration of unauthorized opacity; and

(3) owners and operators of regulated entities that are not subject to reporting under §101.1 0 of this title must provide annual emissions event reporting electronically by using an online form on the commission's secure Web server. The commission will provide an alternative means of reporting in the event that the commission's electronic reportin g system is inoperative. If the commission's server is unavailable due to technical failures or scheduled maintenance, the annual reports may be provided through alternative means to the executive director. Annual electronic reportingTexa s Commission on Environmental Quality Page 108 Chapter 101

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is not required for s mall businesses that meet the small business definition in Texas Water Code, §5.135(g)(2) and to appropriate local air pollution control agencies with jurisdiction. Small businesses shall provide annual reporting by any viable means that meet the time fram es required by this section.

(4) owners and operators of regulated entities that are subject to reporting under §101.10 of this title must provide the information required by this subsection as part of their reporting under §101.10 of this title.